John Goodgame Comments to SNL Financial on Outlook for Midstream Sector
John Goodgame, a partner in Akin Gump’s oil and gas practice, was quoted in the SNL Financial article “Wave of JVs seen for midstream firms in 2016 as private equity circles.”
The midstream sector could see an uptick in joint ventures next year, Goodgame said, due to private equity players pitching in to finance midstream asset acquisitions as well as specific projects. He added that reducing growth capital expenditures, seen by many as a “self-help” strategy for midstream players seeking to right their balance sheets, can be difficult, particularly for companies that have already committed to developing pipelines and gathering systems.
Goodgame noted that certain pipeline operators will not be able to realize revenue unless they complete the projects they have earmarked.