U.S. midstream management teams doubled down on cost cuts and reduced capital expenditures (capex) during second quarter earnings season. However, many also struck generally optimistic tones about improving volumes and a gradual recovery from the energy slump imposed by the coronavirus pandemic.

Overall, “the messaging was really good, particularly around considerably less capex going forward, enabling free cash flow and deleveraging,” as well as more companies “working to stabilize volumes,” said equity analyst Becca Followill at U.S. Capital Advisors in Houston. Natural gas liquids (NGL) volumes proved particularly resilient, she said.

A case in point: Energy Transfer LP, which curtailed capex but trumpeted NGL advances. The Dallas-based company said overall volumes...