Midstream MLP investments have continued to offer compelling income, with several companies increasing payouts.
The Alerian MLP Infrastructure Index (AMZI) is yielding 7.44% as of April 23, on track with its three-year average of 7.44%. AMZI is an index of energy infrastructure MLPs and underpins the Alerian MLP ETF (AMLP ).
Midstream MLP yields are supported by solid underlying distribution growth. Three constituents in AMZI — Energy Transfer (ET), Sunoco (SUN), and Western Midstream (WES) — have raised their payouts in the past few days.
Energy Transfer has increased its distribution to $0.3275 for the first quarter, reflecting an increase of more than 3% as compared to the first quarter of 2024. The payout is up 0.8% sequentially.
Sunoco has declared a distribution of $0.8976 per unit for the first quarter, a 2.5% increase compared to a year ago. Notably, this is the second consecutive quarterly increase in SUN’s distribution. It is consistent with the partnership’s annual distribution growth rate of at least 5%.
Finally, Western Midstream has declared a quarterly cash distribution of $0.910 per unit for the first quarter. That increased 4% from the prior quarter’s payout.
Investors Continue to Move Assets Into Midstream
AMLP has seen strong flows as investors continue to look to the defensiveness and income offered by midstream/MLPs.
AMLP has seen nearly half a billion dollars in net flows year to date through April 23. It has had positive flows in April despite market volatility.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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