A handful of midstream names have already announced increases to their dividends — something for investors to look forward to.
Midstream earnings are just barely underway, but four constituents in the Alerian MLP Infrastructure Index (AMZI) have announced quarter-over-quarter growth to their dividends for the second quarter.
AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). The index is a capped, float-adjusted, cap-weighted composite of energy infrastructure MLPs that earn most of their cash flow from midstream activities.
Midstream Companies That Have Raised Dividends
On July 21, Western Midstream (WES) announced the largest percentage increase to its distribution across midstream companies so far. Meanwhile, the partnership, weighted 11.8% in the index as of July 26, grew its second-quarter distribution to $0.5625. This represents a 12.5% increase over the prior quarter.
Enterprise Products Partners LP (EPD), which has a 11.7% weight in the index as of July 26, was the first midstream company to announce an increase to its quarterly distribution. The partnership grew its dividend to $0.50 per unit, a 2% increase from the prior quarter.
Energy Transfer (ET), weighted 11.6% in the index as of July 26, announced on July 25 a quarterly distribution of $0.31 per unit. This represents a 0.81% increase over the first quarter distribution. Furthermore, energy Transfer is targeting a 3% to 5% annual distribution growth rate.
Hess Midstream (HESM), weighted 3.7% in the index as of July 26, on July 24 announced a second-quarter distribution of $0.6011 per unit, an increase of 2.7%.
While a handful of names have said they will maintain second-quarter dividends from the prior quarter, there have been no cuts.
During “How the US Energy Outlook Benefits Midstream/MLPs” on August 9, VettaFi and SS&C ALPS Advisors will discuss distribution trends and the oil and gas fundamentals and alternative energy incentives that may benefit midstream.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and MLPB, for which it receives an index licensing fee. However, AMLP and MLPB are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and MLPB.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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