Not all energy companies are the same.
The three different categories oil and gas companies fall into are:
Upstream — Produces raw crude oil and natural gas.
Midstream — Focuses on processing, storing, transporting and marketing oil and natural gas.
Downstream — Refines crude oil into gasoline, diesel, jet and other fuels.
Costs are higher in the upstream market, while downstream activities depend on supply and demand.
Midstream profits come from long-term, fixed-fee contracts, so their profits are more stable than their counterparts’. And a little stability sounds nice in these current market conditions.
This post appeared first on Money & Markets, LLC.