Several midstream names have announced increases to third-quarter distributions as earnings are underway.
Midstream companies are in the early stages of reporting earnings. However, many have already announced quarter-over-quarter growth in their dividends for the third quarter of 2024. The midstream segment is known for offering generous income, which is a primary reason many advisors use MLP and energy infrastructure ETFs in portfolios.
To be clear, third-quarter distributions refer to distributions paid during the fourth quarter based on third-quarter operational performance.
Midstream Distribution Growth Amid Earnings
Cheniere (LNG) has announced the largest sequential percentage increase to its dividend across midstream names that have announced third-quarter payouts. The midstream player has increased its dividend by 14.9% from the prior quarter to $0.50 per share.
Additionally, MPLX LP (MPLX) has declared a distribution of $0.9565 per common unit for the third quarter, representing an increase of 12.5% from the prior quarter.
Genesis Energy LP (GEL) has raised its quarterly distribution to $0.165, a 10% increase from the second quarter.
Finally, Kinetik (KNTK) has announced a third-quarter dividend of $0.78 per share, which is a 4% sequential increase.
Investors can get exposure to all four names – Cheniere, MPLX, Genesis Energy, and Kinetik – with the Alerian Energy Infrastructure ETF (ENFR). ENFR tracks the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies, including MLPs and C-corps. AMEI is yielding 5.4% as of October 29.
The Alerian MLP ETF (AMLP ), which tracks the Alerian MLP Infrastructure Index (AMZI), offers pure-play exposure to energy infrastructure MLPs. AMLP provides exposure to MPLX, its top name by weighting, and Genesis Energy, but does not hold Cheniere and Kinetik. AMLP’s underlying index is yielding 7.5% as of October 29.
See more: 2Q24 Midstream Dividend Recap: MLPs Drive Growth
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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