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About: Shell Midstream Partners, L.P. (SHLX), Includes: RDS.A
Summary
- Shell Midstream’s performance was similar to what it had seen last quarter, although Hurricane Barry had a negative impact because of the shutdowns it caused.
- The company’s onshore pipelines continue to perform well, with Zydeco a very notable example.
- There is some very real growth potential offshore as Shell ramps up Appomattox and other companies in the region do the same and pump oil into the Mars pipeline.
- The company generated an adequate distribution coverage, although it was not as high in this quarter as I would normally like to see.
- The financial structure is still concerning, as it does not have sufficient assets to cover its debt.