Pipeline Throughput
The physical volume of product actually moving through a midstream company's pipelines, gathering systems, and terminals in a period -- the operating heartbeat of the business, reported in physical units (natural gas in Bcf/d or BBtu/d, liquids in barrels per day). Because most midstream cash flows are fee-based -- the company earns a toll per unit moved, largely independent of the commodity price -- throughput is the volume half of revenue and the clearest read on how fully the asset base is being used. Rising throughput signals producers are drilling and the system is filling; falling throughput signals the opposite. Units differ from company to company, so throughput is best compared for a company against itself over time rather than raw across operators.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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