Drillers (the “upstream”) are not the only companies being negatively affected by the crash in oil and gas prices and the resulting slowdown in drilling. Midstream companies (pipelines and processing plants) are also affected. If drillers drill less and shut-in wells, that means less gas flowing through pipelines. Although certain minimums are charged, contracts with pipeline companies are complex and involve many factors, among them the price received for the gas flowing through them. Williams, which is in the process of being sold to/merged with Energy Transfer Equity (see Williams Board “Unanimously” Committed to Selling to ETE), rivals MarkWest Energy (which was sold to Marathon Petroleum) as the biggest midstream company in the Marcellus/Utica. Williams released their fourth quarter and full year 2015 financial update yesterday. The company lost $1.6 billion in 4Q15 alone, but because they made money in other quarters, Williams “only” lost $1.4 billion for the entire year in 2015. Here’s yesterday’s 2015 financial update…
