...Growth Opportunities Opportunities exist for pipeline operators to increase in size and scale, which benefits the credit profile for an issuer. Significant spending for acquisitions and organic growth projects tends to offset this, although some projects can be backed by long-term contracts. Throughput volumes have been on the rise for the vast majority of crude oil and refined products pipelines. Storage of crude and products may not be as profitable given crude prices remain in backwardation. Overall, the sector has seen spending funded with debt and equity. Fitch expects leverage for the sector to remain largely unchanged in the near to medium term given spending expectations. Crude Production Drives Infrastructure Demand As U.S. crude production ramps up, pipeline operators continue to seek ways to move product from supply regions to markets with demand. Significant projects have been placed into service, alleviating bottlenecks. For example, new takeaway capacity from Cushing has resulted...
