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Company > American Midstream Partners LP: Business Model, SWOT Analysis, and Competitors 2023

American Midstream Partners LP: Business Model, SWOT Analysis, and Competitors 2023

Published: Jun 04, 2023

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    American Midstream Partners LP is a leading natural gas and crude oil transportation and processing company operating in the United States. This blog article will delve into the company's business model, providing insights into its key operations and revenue streams. Additionally, a SWOT analysis will be conducted to evaluate the firm's strengths, weaknesses, opportunities, and threats. Furthermore, the article will explore the competitive landscape, identifying the main competitors that American Midstream Partners LP faces in the industry. By examining these aspects, readers will gain a comprehensive understanding of the company's position in the market by 2023.

    What You Will Learn:

    • Who owns American Midstream Partners LP and the significance of their ownership in the company.
    • The mission statement of American Midstream Partners LP and how it guides their business operations and decision-making.
    • How American Midstream Partners LP generates revenue and the key factors that contribute to their financial success.
    • An explanation of the American Midstream Partners LP Business Model Canvas and how it outlines their key activities, resources, and customer segments.
    • The main competitors of American Midstream Partners LP and how they compare in terms of market share and offerings.
    • A comprehensive SWOT analysis of American Midstream Partners LP, highlighting their strengths, weaknesses, opportunities, and potential threats in the industry.

    Who owns American Midstream Partners LP?

    Ownership Structure of American Midstream Partners LP

    American Midstream Partners LP (AMID) is a publicly traded limited partnership engaged in the gathering, processing, and transmission of natural gas and crude oil across various regions in the United States. As a publicly traded company, AMID has a complex ownership structure that involves several institutional and individual investors.

    Institutional Ownership

    Institutional investors play a significant role in the ownership of American Midstream Partners LP. These investors include mutual funds, pension funds, insurance companies, and other large financial institutions. They are attracted to AMID due to its stable cash flows, dividend distribution, and potential for long-term growth.

    According to the latest available data, institutional ownership accounts for a substantial portion of AMID's outstanding shares. Major institutional shareholders include well-known investment firms such as BlackRock, Vanguard Group, and State Street Corporation. These institutions often hold shares on behalf of their clients, including individual investors, providing them exposure to AMID's potential returns.

    Management Team and Employee Ownership

    The management team of American Midstream Partners LP, led by its Chief Executive Officer and other key executives, also holds a significant stake in the company. It is common for executives to own shares in the company they manage, aligning their interests with those of the shareholders. This ownership structure incentivizes management to make decisions that enhance the company's performance and shareholder value.

    Additionally, American Midstream Partners LP may have various employee ownership programs in place, such as stock option plans or restricted stock units, which allow eligible employees to acquire ownership in the company. This helps foster a sense of ownership and commitment among the workforce, as they directly benefit from the company's success.

    Individual Shareholders

    Individual investors, including retail investors and high net worth individuals, also own shares in American Midstream Partners LP. These investors may have invested in AMID through brokerage accounts, retirement accounts, or other investment vehicles. Individual shareholders, though collectively holding a smaller percentage of the company's shares compared to institutional investors, contribute to the overall ownership and trading activity of AMID's stock.

    It is worth noting that ownership in American Midstream Partners LP can change over time as investors buy or sell shares on the open market. Therefore, the exact ownership percentages may vary, and it is advisable to refer to the latest reports or regulatory filings for the most up-to-date information on the company's ownership structure.

    In conclusion, American Midstream Partners LP is owned by a diverse group of stakeholders, including institutional investors, the management team, and individual shareholders. This broad ownership base contributes to the company's stability, growth, and the alignment of interests among its various stakeholders.

    What is the mission statement of American Midstream Partners LP?

    Understanding the Mission of American Midstream Partners LP

    A mission statement is a concise expression of the purpose and goals of a company. It provides a clear direction and sets the tone for the organization's activities and decisions. In the case of American Midstream Partners LP, their mission statement serves as a guiding principle for their operations within the midstream energy sector.

    The mission statement of American Midstream Partners LP can be summarized as follows:

    "American Midstream Partners LP is committed to providing reliable and efficient midstream energy services to our customers while delivering superior value to our stakeholders. We strive to maintain a strong safety culture, foster innovation, and build strong partnerships within the industry."

    With this mission statement, American Midstream Partners LP outlines its dedication to meeting the needs of its customers in the midstream energy market. By emphasizing reliability and efficiency, the company aims to ensure the smooth transportation, storage, and processing of energy resources.

    Moreover, the mission statement highlights American Midstream Partners LP's commitment to delivering superior value to stakeholders. This includes shareholders, employees, and the communities in which they operate. By generating strong financial returns and focusing on sustainability, the company aims to create long-term value and positive impacts.

    Safety is a core aspect of American Midstream Partners LP's mission statement. The company recognizes the importance of maintaining a safe working environment for its employees, as well as the communities in which they operate. By prioritizing safety, they strive to minimize risks and ensure the well-being of all stakeholders.

    Innovation is another critical element of American Midstream Partners LP's mission statement. The company acknowledges the rapidly evolving energy landscape and the need for creative solutions. By fostering innovation, American Midstream Partners LP aims to stay at the forefront of industry advancements, driving efficiency, and sustainability.

    Lastly, the mission statement emphasizes the importance of building strong partnerships within the industry. American Midstream Partners LP recognizes that collaboration is crucial in a complex and interconnected energy sector. By cultivating strong relationships with suppliers, customers, and other stakeholders, the company aims to enhance operational excellence and create mutual value.

    In conclusion, American Midstream Partners LP's mission statement reflects their commitment to providing reliable and efficient midstream energy services while delivering superior value. By prioritizing safety, fostering innovation, and building strong partnerships, the company aims to thrive in the evolving energy landscape while meeting the needs of its customers and stakeholders.

    How does American Midstream Partners LP make money?

    Overview of American Midstream Partners LP

    American Midstream Partners LP is a leading natural gas and crude oil infrastructure company based in the United States. They own, operate, develop, and acquire a diversified portfolio of midstream energy assets. These assets include gathering systems, processing plants, transmission and storage facilities, and distribution pipelines.

    Revenue Streams

    American Midstream Partners LP generates revenue through various streams within the midstream energy sector. The primary sources of revenue for the company are:

    1. Transportation and Storage Services

    American Midstream Partners LP earns a significant portion of its revenue by providing transportation and storage services for natural gas and crude oil. They own and operate an extensive network of pipelines and storage facilities, allowing them to transport and store energy commodities for their customers. The company charges fees based on the volume of energy transported and the duration of storage, providing a stable and recurring revenue stream.

    2. Processing and Fractionation

    Another revenue stream for American Midstream Partners LP is the processing and fractionation of natural gas and crude oil. They operate processing plants that separate different components from the raw natural gas stream, such as methane, ethane, propane, and butane. These components can then be sold separately, generating additional revenue for the company. Similarly, the fractionation process separates crude oil into various petroleum products, which can be sold at different prices, further contributing to their revenue.

    3. Wholesale Marketing and Trading

    American Midstream Partners LP engages in wholesale marketing and trading activities, which also contribute to their revenue. Through their expertise in the midstream energy sector, they are able to optimize the value of the energy commodities they handle. This includes buying and selling natural gas, crude oil, and other energy products in wholesale markets, taking advantage of price differentials and market fluctuations. By participating in these activities, the company can generate additional revenue and enhance their overall profitability.

    4. Contractual Agreements and Fee-based Services

    American Midstream Partners LP enters into long-term contractual agreements with customers, which provide a stable revenue stream. These agreements often include minimum volume commitments, ensuring a certain level of demand for their services. Additionally, the company offers fee-based services such as asset management, operational support, and maintenance services to third parties. These services generate revenue by leveraging their expertise and infrastructure in the midstream energy sector.

    Conclusion

    American Midstream Partners LP generates revenue through a diversified portfolio of midstream energy assets and services. Their transportation and storage services, processing and fractionation operations, wholesale marketing and trading activities, and contractual agreements all contribute to their revenue streams. By leveraging their extensive infrastructure and expertise, the company continues to drive growth and profitability in the midstream energy sector.

    American Midstream Partners LP Business Model Canvas Explained

    Introduction

    The American Midstream Partners LP is a leading provider of midstream services in the energy industry. Their business model is based on a comprehensive framework known as the Business Model Canvas. This canvas provides a visual representation of the company's key components and how they interrelate to create value for their stakeholders. In this section, we will dive deeper into the American Midstream Partners LP Business Model Canvas and explain each element in detail.

    Key Partnerships

    One of the crucial elements of the American Midstream Partners LP Business Model Canvas is their key partnerships. The company collaborates with various stakeholders to enhance their operations and expand their reach. These partnerships include working with upstream producers, downstream customers, and other midstream companies.

    By partnering with upstream producers, American Midstream can secure a steady supply of raw materials, such as natural gas, crude oil, and condensate. This ensures a constant flow of inputs into their midstream infrastructure, allowing them to provide reliable services to their downstream customers.

    Additionally, the company collaborates with downstream customers, including refineries, petrochemical plants, and utility companies. These partnerships enable American Midstream to understand the specific needs and demands of their customers, tailoring their services to meet their requirements effectively.

    Moreover, American Midstream Partners LP forms strategic alliances with other midstream companies to leverage their expertise and resources. These partnerships allow them to share infrastructure, reduce costs, and optimize their operations. By working together, they can expand their market presence and capture new business opportunities.

    Key Activities

    The key activities of American Midstream Partners LP revolve around the efficient transportation, storage, and processing of energy products. They operate an extensive network of pipelines, terminals, and treatment facilities to ensure the seamless flow of natural gas, crude oil, and other liquids.

    One of their primary activities is the transportation of energy products from production sites to end-users. This involves the construction, operation, and maintenance of pipelines that span across various regions. American Midstream has built a reputation for reliable and safe transportation services, ensuring the timely delivery of products to their customers.

    Another significant activity is the storage of energy products. American Midstream owns and operates storage terminals strategically located near key demand centers. These facilities provide customers with flexible storage solutions, allowing them to optimize their inventory levels and respond to market fluctuations.

    Furthermore, American Midstream engages in the processing and treatment of energy products. They have specialized facilities that separate impurities and contaminants from natural gas and crude oil, ensuring compliance with quality standards and regulatory requirements. This processing capability adds value to the products and enhances their marketability.

    Customer Relationships

    Customer relationships play a vital role in the American Midstream Partners LP Business Model Canvas. The company strives to build long-term partnerships with their customers based on trust, reliability, and mutual benefit. They understand the importance of delivering exceptional customer service to maintain customer satisfaction and loyalty.

    American Midstream achieves this by providing personalized solutions tailored to meet the unique requirements of each customer. They work closely with their customers to understand their needs, challenges, and goals, ensuring that their services align with their expectations.

    The company also maintains open lines of communication with their customers, actively seeking feedback and addressing any concerns promptly. By fostering strong relationships, American Midstream aims to become the preferred midstream provider for their customers, driving customer retention and generating repeat business.

    Conclusion

    The American Midstream Partners LP Business Model Canvas provides a comprehensive overview of how the company creates value for its stakeholders. Through strategic partnerships, efficient key activities, and customer-centric relationships, American Midstream has established itself as a leading player in the midstream industry. By understanding and leveraging the various elements of their business model, the company continues to drive growth and deliver sustainable results.

    Which companies are the competitors of American Midstream Partners LP?

    Major Competitors

    American Midstream Partners LP operates in the midstream sector of the energy industry, providing gathering, processing, and transportation services for natural gas and crude oil. As such, it faces competition from several other companies operating in the same space. Some of the major competitors of American Midstream Partners LP include:

    1. Enterprise Products Partners LP: With a diverse portfolio of midstream energy services, Enterprise Products Partners LP is one of the largest publicly traded partnerships in the midstream sector. It operates an extensive network of pipelines, storage facilities, and processing plants, making it a strong competitor for American Midstream Partners LP.

    2. Energy Transfer LP: Energy Transfer LP is another significant player in the midstream sector, offering a wide range of services including natural gas transportation, storage, and processing. The company operates an extensive network of pipelines across the United States and owns various storage and terminal facilities. Its size and scale make it a formidable competitor to American Midstream Partners LP.

    3. MPLX LP: MPLX LP is a leading midstream energy company involved in the gathering, processing, and transportation of natural gas and crude oil. With a focus on expanding its infrastructure, MPLX LP has a strong presence in key regions and competes directly with American Midstream Partners LP in certain markets.

    4. Targa Resources Corp: Targa Resources Corp is an energy infrastructure company that operates across the midstream value chain, providing gathering, processing, and storage services for natural gas and crude oil. With a strong presence in major production areas, Targa Resources Corp is a direct competitor to American Midstream Partners LP.

    Regional Competitors

    In addition to these major competitors, American Midstream Partners LP also faces competition from regional players that operate in specific geographic areas. These competitors may have a more localized focus but can still pose challenges to American Midstream Partners LP in their respective markets. Some notable regional competitors include:

    1. Enable Midstream Partners LP: Enable Midstream Partners LP is a midstream energy company that primarily operates in the central and southern United States. It provides natural gas gathering, processing, and transportation services, and competes directly with American Midstream Partners LP in certain regions.

    2. Crestwood Equity Partners LP: Crestwood Equity Partners LP is a midstream company that operates in several key shale plays across the United States. It offers a range of services including gathering, processing, and storage of natural gas and crude oil. In specific regions where both companies have a presence, Crestwood Equity Partners LP is a significant competitor to American Midstream Partners LP.

    3. Western Gas Partners LP: Western Gas Partners LP is an independent midstream energy company operating in the western United States. It provides gathering, processing, and transmission services for natural gas and competes with American Midstream Partners LP in certain regions within its operational footprint.

    While there are numerous competitors in the midstream sector, American Midstream Partners LP has established its presence through strategic partnerships, a diverse portfolio of assets, and a focus on customer service and reliability. Despite competition, the company continues to pursue growth opportunities and strengthen its position in the industry.

    American Midstream Partners LP SWOT Analysis

    Strengths

    • Strong market position: American Midstream Partners LP has established itself as a leading provider of midstream services in the United States. With a comprehensive network of pipelines, terminals, and storage facilities, the company is well-positioned to serve the growing demand for energy transportation and storage.

    • Diverse asset portfolio: The company's asset portfolio comprises a wide range of midstream infrastructure, including natural gas pipelines, crude oil gathering systems, and processing plants. This diversity not only allows American Midstream Partners LP to cater to different energy products but also provides a hedge against market volatility.

    • Strategic partnerships: American Midstream Partners LP has established strategic partnerships with major energy producers and consumers, including oil and gas companies and utilities. These partnerships provide the company with stable revenue streams and long-term contracts, ensuring a predictable cash flow.

    Weaknesses

    • High debt levels: One of the major weaknesses of American Midstream Partners LP is its high debt burden. The company has taken on significant debt to finance its expansion and acquisition activities. This could pose a risk if interest rates rise or if the company's cash flow is affected by a downturn in the energy market.

    • Vulnerability to commodity price fluctuations: American Midstream Partners LP's financial performance is highly dependent on commodity prices, particularly natural gas and crude oil. Fluctuations in these prices can significantly impact the company's revenue and profitability. This vulnerability exposes the company to market risks beyond its control.

    Opportunities

    • Expansion into new markets: American Midstream Partners LP has the opportunity to expand its operations into new geographical areas and markets. The increasing production of natural gas and crude oil in regions like the Permian Basin and Marcellus Shale presents growth opportunities for the company to build additional pipelines and infrastructure.

    • Renewable energy transition: As the world transitions towards cleaner and renewable sources of energy, American Midstream Partners LP can seize the opportunity to invest in green energy infrastructure. By diversifying its portfolio to include renewable energy assets such as solar or wind, the company can tap into the growing demand for sustainable energy solutions.

    Threats

    • Regulatory challenges: The midstream industry is subject to various regulations and permits, which can pose challenges for American Midstream Partners LP. Changes in regulations, particularly those related to environmental protection and safety, could increase compliance costs and create barriers to entry for new projects.

    • Competitive landscape: American Midstream Partners LP operates in a highly competitive industry, facing competition from both established players and emerging midstream companies. Intense competition could put pressure on the company's pricing power and market share, potentially impacting its profitability.

    • Technological advancements: The midstream industry is constantly evolving, driven by technological advancements and innovation. American Midstream Partners LP needs to stay updated with the latest technologies to remain competitive and efficient. Failure to adapt to technological changes could hinder the company's growth and operational effectiveness.

    Key Takeaways

    • American Midstream Partners LP is owned by private equity firm ArcLight Capital Partners, which holds a majority stake in the company.
    • The mission statement of American Midstream Partners LP is to provide reliable and efficient midstream services to support the energy industry's growth and development.
    • American Midstream Partners LP generates revenue primarily through its midstream operations, including transportation, storage, and processing of oil, gas, and other energy products.
    • The business model canvas of American Midstream Partners LP includes key elements such as customer segments, value propositions, key activities, channels, and revenue streams.
    • Competitors of American Midstream Partners LP include other midstream companies such as Enterprise Products Partners LP, Williams Companies Inc., and Plains All American Pipeline LP.
    • A SWOT analysis of American Midstream Partners LP highlights its strengths in strategic locations and diverse asset portfolio, weaknesses in high debt levels, opportunities in expanding infrastructure projects, and threats from regulatory and market uncertainties.

    Conclusion

    In conclusion, American Midstream Partners LP is owned by ArcLight Capital Partners, a leading private equity firm specializing in energy infrastructure investments. The mission statement of American Midstream Partners LP is to deliver reliable and efficient midstream services to their customers while maximizing value for their stakeholders.

    American Midstream Partners LP generates revenue through various sources, including transportation and storage fees, processing and treating fees, and commodity sales. Their diversified business model allows them to capitalize on opportunities in the midstream energy sector.

    Analyzing their business model canvas, we can see that American Midstream Partners LP focuses on building and operating midstream assets, offering a wide range of services to producers and end-users in the energy industry. Their key activities include pipeline transportation, natural gas and crude oil gathering, processing and treating, and storage and terminalling.

    As for competition, American Midstream Partners LP faces competition from other midstream energy companies such as Enterprise Products Partners LP, Kinder Morgan Inc., and Energy Transfer LP. These companies operate in a similar market, providing similar services to customers, and constantly strive to gain a competitive edge in the industry.

    Lastly, in conducting a SWOT analysis of American Midstream Partners LP, we identified strengths such as their strategic asset footprint and strong customer relationships. However, they also face weaknesses like limited financial flexibility and exposure to commodity price fluctuations. Opportunities lie in expanding their infrastructure and diversifying their service offerings, while threats include regulatory changes and potential disruptions in the energy market.

    Overall, American Midstream Partners LP is a key player in the midstream energy sector, successfully navigating the challenges and opportunities of the industry while delivering value to their customers and stakeholders.

    FAQs

    What is PLC SWOT analysis?

    PLC SWOT analysis refers to the analysis of the strengths, weaknesses, opportunities, and threats of a company in the context of its product life cycle (PLC). The product life cycle is a concept that describes the various stages a product goes through from its introduction to its decline in the market.

    Strengths: These are the internal factors that give a company an advantage over its competitors. It includes attributes such as a strong brand reputation, superior technology, efficient production processes, and a loyal customer base.

    Weaknesses: These are the internal factors that put a company at a disadvantage compared to its competitors. It may include factors like poor product quality, limited distribution channels, high production costs, or a lack of skilled workforce.

    Opportunities: These are the external factors that can be leveraged by a company to its advantage. It includes aspects like emerging market trends, new customer segments, technological advancements, or changes in regulations that can create new business opportunities.

    Threats: These are the external factors that pose challenges or risks to a company's success. It may include factors like intense competition, changing customer preferences, economic downturns, or disruptive technologies that can impact the company's market position.

    By conducting a SWOT analysis specifically for the product life cycle stage, a company can identify its unique strengths and weaknesses at that particular stage, as well as potential opportunities and threats that may arise during that stage. This analysis helps in developing strategies to capitalize on strengths, address weaknesses, leverage opportunities, and mitigate threats, thereby improving the company's overall competitiveness in that stage of the product life cycle.

    How to do a SWOT analysis on a company?

    To conduct a SWOT analysis on a company, follow these steps:

    1. Identify the objective: Determine the purpose of the analysis. It could be to assess the company's current position, evaluate a potential investment, or develop a strategic plan.

    2. Gather information: Collect relevant data and information about the company's internal and external factors. This can include financial statements, market research, customer feedback, industry reports, competitor analysis, and employee feedback.

    3. Identify strengths: Assess the company's internal factors that give it a competitive advantage. Consider factors such as brand reputation, unique products or services, strong financial position, skilled workforce, patents or intellectual property, or effective distribution channels.

    4. Identify weaknesses: Evaluate the internal factors that hinder the company's performance. These could include high employee turnover, outdated technology, lack of innovation, weak financial position, poor marketing strategies, or limited product range.

    5. Identify opportunities: Analyze external factors that could positively impact the company. Look for market trends, emerging markets, new technologies, changes in regulations or policies, or gaps in the market that the company can capitalize on.

    6. Identify threats: Evaluate external factors that could negatively affect the company's success. Consider factors such as intense competition, changing consumer preferences, economic downturns, new regulations, supplier issues, or potential risks in the industry.

    7. Analyze and prioritize: Review the identified strengths, weaknesses, opportunities, and threats. Assess their importance and impact on the company's overall strategy and objectives. Prioritize the most significant factors that need to be addressed or leveraged.

    8. Develop strategies: Based on the analysis, develop strategies that capitalize on strengths, overcome weaknesses, take advantage of opportunities, and mitigate threats. Set clear objectives and action plans to achieve them.

    9. Monitor and update: Regularly review and update the SWOT analysis as the company's internal and external environment changes. This will ensure that the strategies remain relevant and effective.

    Remember that a SWOT analysis is just one tool in a broader strategic planning process, and it should be used in conjunction with other analytical tools and insights to make well-informed decisions.

    What is SWOT analysis according to Albert Humphrey?

    According to Albert Humphrey, SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats of an organization or a project. It involves assessing the internal and external factors that can impact the success or failure of a venture. The strengths and weaknesses refer to the internal factors, such as resources, capabilities, and limitations, while opportunities and threats are external factors, such as market trends, competition, and regulatory changes. SWOT analysis is aimed at identifying key areas of focus and developing strategies that leverage strengths, address weaknesses, exploit opportunities, and mitigate threats.

    What are the opportunities in a SWOT analysis?

    Opportunities in a SWOT analysis refer to external factors that could potentially benefit an organization or individual. These opportunities can be leveraged to improve performance, increase market share, or achieve strategic goals. Some common examples of opportunities include:

    1. Market growth: Identifying emerging markets, new customer segments, or untapped geographic areas with potential for expansion.
    2. Technological advancements: Utilizing new technologies, digital tools, or automation to enhance efficiency, reduce costs, or develop innovative products/services.
    3. Changing consumer preferences: Capitalizing on shifts in consumer behavior, trends, or demands to offer new products, improve customer experiences, or gain a competitive edge.
    4. Strategic alliances: Forming partnerships, collaborations, or joint ventures with other organizations to access new markets, share resources, or develop complementary products.
    5. Economic factors: Leveraging favorable economic conditions, such as low interest rates, government incentives, or market stability, to invest, expand, or diversify.
    6. Regulatory changes: Adapting to new laws, regulations, or policies that may create opportunities for new products, services, or market entry.
    7. Competitive gaps: Identifying weaknesses or gaps in competitors' offerings, customer service, or pricing to gain a competitive advantage.
    8. Social or environmental trends: Addressing growing concerns related to sustainability, social responsibility, or ethical practices to attract environmentally conscious or socially responsible customers.
    9. Demographic shifts: Responding to changing demographics, such as an aging population or increasing diversity, by tailoring products/services to specific customer segments.
    10. Global expansion: Exploring international markets, export opportunities, or global partnerships to reach new customers and increase market share.

    It is important to note that while opportunities present potential benefits, they also come with risks and challenges. Therefore, organizations must carefully analyze and evaluate each opportunity to determine its viability and alignment with their overall objectives.

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