Pipelines

Actor Type: Infrastructure Breaks When: Regulatory Shifts Capital Intensity: Extreme Cash Flow Stability: Very Stable Economic Nature: Infrastructure / Toll Margin Driver: Rates Notes / Insights: Classic toll collectors Performs Best When: Any Price Regime Pricing Power: Strong Primary Function: Transport crude and products Public / Private Mix: Mostly Public Representative Firms: Enbridge, Kinder Morgan Residual Risk After Transfer: Low Revenue Model: Take-or-Pay Contracts Typical Margin Profile: High Value Chain Segment: Midstream Who Ultimately Bears the Risk?: Ratepayers / Shippers