Market Overview

East Daley: Limited Takeaway Capacity to Plague Northeast Natural Gas Liquids Market

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New analysis indicates that as takeaway constraints for natural gas
out of the Marcellus and Utica producing areas begin to lift, wet
natural gas production growth will be limited by a new set of
constraints caused by limited natural gas liquids (NGL) takeaway
capacity in 2018

East
Daley Capital Advisors, Inc.,
an energy information and insights
provider that is redefining how markets view risk for midstream and
exploration and production (E&P) companies, reports that as the
much-needed additional NGL takeaway capacity is delayed in the
Northeast, midstream NGL players will become increasingly constrained
which will create a ceiling for wet gas production and put downward
pressure on earnings for the operators in the region.

"The NGL market in the Northeast continues to be a logistical quagmire
for producers, midstream operators and marketers," said Justin Carlson,
VP and Managing Director, Research at East Daley Capital. "The impact of
the constraints in that region will result in low propane prices this
summer, even for Northeast standards. One reason for this is Energy
Transfer Partner's ME-1 pipeline has been shut down for a month removing
vital C3 takeaway from the Northeast as spring quickly approaches."

The analysis indicates that if ME-1 and ME-2 are further delayed,
producers such as Antero Resources, Range Resources and Southwestern can
expect lower earnings from lower realized liquids prices and stalled wet
production growth. Wet producers unable to reach production guidance
will drive earnings lower for midstream providers such as MPLX, Antero
Midstream, Williams and CNX Midstream.

"NGL takeaway challenges from the Northeast are amplified with scarce
liquids storage within the basin," said Carlson. "The geology in
Pennsylvania and West Virginia does not allow for significant amounts of
large underground storage, leaving limited room for emergency storage if
problems with takeaway arise. Couple this with the rapid growth in wet
gas production, both current and expected, and some very real issues
begin to present themselves."

East Daley's largest asset database of U.S. energy infrastructure and
patent-pending production allocation model, combined with in-depth
analysis, brings greater transparency to the energy and commodity
financial market by providing investors and market participants with
deeper, more accurate data to inform their investment and strategy
decisions.

Contact
East Daley
for a copy of its official response to these
changes, titled: FERC Rules On Tax Changes.

About East Daley Capital Advisors, Inc.

East Daley Capital is an energy information and insights provider that
is redefining how markets view risk for midstream and exploration and
production (E&P) companies. In addition to using top-level financial
data to predict a company's performance, East Daley delivers asset and
commodity analysis that provides comprehensive, fact-based intelligence.
Supported by a team of unbiased, experienced financial and commodity
analysts, East Daley provides its clients unparalleled insight into how
midstream and E&P companies operate and generate cash flow, in addition
to commodity forecasting. East Daley uses publicly available fundamental
data and intersects that data with a company's reported financials to
asset-level adjusted-EBITDA and distributable cash flow (DCF). The
result allows for more informed portfolio decisions. Founded in 2014,
the company is based in Centennial, Colorado. For more information visit http://www.eastdaley.com.

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