Midstream earnings reports for the fourth quarter are still underway, but many companies have already announced increases to their dividends, giving investors something to look forward to.
Nine constituents in the AMEI, tracked by the Alerian Energy Infrastructure ETF (ENFR), have announced growth to their fourth quarter dividend. AMEI is a composite of North American energy infrastructure companies, including MLPs and C-corps.
Midstream has made significant progress rebuilding a track record of growing payouts since the energy market volatility and pandemic-related uncertainty of 2020. Through the fourth quarter, there have been six consecutive quarters in which there were no dividend cuts across the Alerian energy infrastructure index suite.
Six AMEI constituents that recently announced dividend increases for the fourth quarter include Delek Logistics Partners LP (DKL), EnLink Midstream LLC (ENLC), Energy Transfer LP (ET), Hess Midstream LP (HESM), ONEOK Inc (OKE), and The Williams Companies Inc (WMB).
ONEOK on January 18 increased its fourth quarter dividend to $0.955 per share, an increase of 2.1%. This is the company’s first distribution increase since January 2020.
Williams on Tuesday increased its dividend to $0.4475 per share, an increase of 5.3% from the third quarter of 2022.
On January 25, Energy Transfer announced a quarterly distribution of $0.305 per common unit for the fourth quarter, which is a 74.1% increase year over year and a 15% increase from the prior quarter.
Hess Midstream on January 23 declared a quarterly cash distribution of $0.5696 per Class A share for the fourth quarter, representing a 5% increase compared to the distribution for the fourth quarter of 2021, and a 1.2% increase compared to last quarter.
Delek Logistics announced its quarterly cash distribution for the fourth quarter of $1.02 per common limited partner unit, according to a January 23 statement. This represents a 3% increase from the distribution for the third quarter of 2022.
EnLink increased its fourth quarter dividend by approximately 11% from the prior quarter to $0.125 per common unit, according to a statement from the company on January 18. Notably, this is the company’s first dividend increase since the third quarter of 2021.
To be clear, fourth quarter dividends refer to the dividends paid during the first quarter of 2023 as a result to operational performance during the prior quarter.
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