• 6 min read
• Published on 25 July 2025
Hey! We are Nemo.
Nemo, short for Never Miss Out, is a mobile investment platform that delivers curated, data-driven investment ideas to your fingertips. It offers commission-free trading across stocks, ETFs, crypto, and CFDs, along with AI-powered tools, real-time market alerts, and themed stock collections called Nemes.
Download the App
Scan the QR code to download the Nemo app and start investing on Nemo today
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
Every time the OPEC+ cartel gathers, the market holds its breath. Traders glue themselves to screens, speculators place their bets, and the news cycle churns with predictions of soaring or crashing oil prices. It’s all very dramatic. To me, however, focusing on the price of a barrel of oil is a bit like watching the horses without owning the racetrack. The real, and dare I say, more sensible opportunity might lie with the companies that own the track itself.
I’m talking about the midstream energy sector. It’s the unglamorous, nuts and bolts part of the oil and gas industry. These are the companies that own the pipelines, the storage tanks, and the terminals. They are, in essence, the toll collectors on the world’s energy superhighway. And when OPEC+ decides to open the taps and increase production, who do you think benefits from the increased traffic?
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
Let’s be honest, pipelines don’t make for exciting dinner party conversation. But their business model is wonderfully simple. Unlike oil producers, whose fortunes rise and fall with the volatile price of crude, midstream operators typically get paid for the volume they transport. More oil flowing through their pipes means more fees collected. It’s a straightforward, fee-based model that can offer a degree of predictability in a notoriously unpredictable industry.
Think of it this way. You could bet on which car will win a race, or you could own the toll booth on the only road to the finish line. I know which I’d find more relaxing. As global demand recovers and production slowly ramps up, these infrastructure owners are positioned to see a steady increase in business. Their revenue is tied to the physical movement of energy, not the speculative whims of the commodities market. This creates a potential for steady cash flows, which is music to an investor’s ears.
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
What makes the current situation particularly interesting is that OPEC+ isn’t just flooding the market. They are being quite methodical, gradually increasing output to meet demand without causing a price collapse. This measured approach is ideal for midstream companies. It creates a sustained "volume tailwind," allowing them to manage capacity and potentially generate consistent revenue growth over time.
This predictability often translates into one of my favourite things, dividends. Many of these companies are structured to pass on a significant portion of their cash flow to shareholders. As more oil and gas moves through their existing infrastructure, the incremental cost is often low, meaning more cash could potentially be available for distributions. It’s a simple equation, higher volumes can support stronger and more reliable dividends, assuming the business is managed well. Of course, dividends are never guaranteed, but the business model is certainly conducive to them.
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
Now, it’s not as simple as just picking any company with a pipeline. The landscape is varied. You have operators like Western Midstream Partners, which is heavily involved in key US production basins. Then there are specialists like Hess Midstream, focused on prolific regions such as the Bakken shale. And you have giants like Williams Companies, which operates a vast network primarily for natural gas but benefits from the broader energy ecosystem. Understanding these nuances is key. If you're looking to explore this landscape, a collection of these firms, like the OPEC+ Opens The Taps: Midstream's Moment basket, can offer a starting point for research.
Of course, no investment is without risk. The global push toward renewable energy is a long term headwind, and evolving environmental regulations could add costs. Furthermore, these dividend paying stocks can be sensitive to interest rate changes. If rates rise significantly, their yields might look less attractive compared to safer government bonds. It’s crucial to go in with your eyes open, acknowledging that even toll roads can face disruptions. Still, for the foreseeable future, the world is going to need oil, and someone will have to be paid to move it.
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
View the full Basket:OPEC+ Opens The Taps: Midstream's Moment
This article is marketing material and should not be construed as investment advice. No information set out in this article be considered, as advice, recommendation, offer, or a solicitation, to buy or sell any financial product, nor is it financial, investment, or trading advice. Any references to specific financial product or investment strategy are for illustrative / educational purposes only and subject to change without notice. It is the investor’s responsibility to evaluate any prospective investment, assess their own financial situation, and seek independent professional advice. Past performance is not indicative of future results. Please refer to our Risk Disclosure.
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article