Revenue growth turns positive
The lower energy commodity prices over nearly the last two years negatively impacted the revenues of midstream giants Enterprise Products Partners (EPD), Energy Transfer Equity (ETE), Kinder Morgan (KMI), and Williams Companies (WMB). However, a recovery in commodity prices contributed to positive year-over-year revenue growth for all four companies in 1Q17.
The graph above compares the quarterly year-over-year revenue growth for the four companies over the last three years.
In addition to fee-based revenues, midstream companies buy and sell different commodities. The cost of the commodities that were bought fell with decreasing revenues, resulting in a lower impact on operating earnings than on revenues of these companies.