1Q25 Midstream/MLP Buybacks Steady; More on Deck in 2Q?

A handful of midstream companies were active with repurchases in 1Q25 as midstream/MLP stocks generally gained. Weakness in energy stocks in April may have driven more buyback activity for 2Q25, with some companies likely coming off the sidelines and dusting off buyback authorizations that had been idle for some time. Today’s note reviews equity repurchases in 1Q25 and discusses why there may be more activity for 2Q25 in light of recent market volatility.

With general strength in midstream equities in 1Q25, only a handful of companies were active with buybacks during the quarter. In aggregate, six companies in the Alerian Midstream Energy Index (AMNA) repurchased $693 million in equity during 1Q25. This was relatively in line with the $740 million in total repurchases for 4Q24.

Keep in mind, energy was the best-performing sector in 1Q25. And AMNA was up over 5% on a price-return basis for the quarter. It was not until the start of 2Q25 that energy stocks came under significant pressure as oil prices fell (read more). As discussed more below, equity weakness in April may have supported more opportunistic buyback activity in 2Q25.

For 1Q25, Cheniere Energy (LNG) was once again by far the most active with buybacks, spending $350 million on repurchases. Targa Resources (TRGP) followed with $125 million in equity buybacks, having also just raised its dividend by 33% (read more). Notably, TRGP bought back another $89 million in equity in April, taking advantage of weakness in shares. ONEOK (OKE) and Antero Midstream (AM) each bought back approximately $30 million in 1Q25.

Turning to MLPs, MPLX (MPLX) repurchased $100 million in units in 1Q25, consistent with its buyback level from 4Q24. Enterprise Products Partners (EPD) completed $60 million in repurchases in 1Q25.

The table below shows the energy infrastructure companies with buyback authorizations and their total repurchases. The table also includes each company’s weighting in AMNA, the Alerian MLP Infrastructure Index, the Alerian MLP Index (AMZ), the Alerian Midstream Energy Select Index, and the Alerian Midstream Energy Corporation Dividend Index. The majority of the indexes by weighting as of May 14, 2025 have buyback authorizations in place. 

For many midstream companies, buybacks remain largely opportunistic, and dividends are the primary means for returning cash to shareholders. Buybacks also compete with other uses of capital, including robust growth opportunities related to natural gas (read more).

For companies that take an opportunistic approach, equity weakness in April may have kickstarted repurchases. While midstream was more resilient than other energy subsectors, AMNA was down almost 13% at its relative bottom in April and finished the month down almost 6%. Notably, the sell-off in stocks likely coincided with blackout periods around earnings, providing a limited window for repurchases.

On their earnings call, management from Plains All American (PAA) / (PAGP) mentioned ~$7.5 million of repurchases in April ahead of their blackout period. PAA had not repurchased common units in more than two years. While only six companies were active with buybacks in 1Q25, there may be more activity in 2Q given the pullback in stocks. The PAA example highlights the utility of having a buyback authorization in place when there are periods of market dislocation as seen in April.

Also of note, Kinetik (KNTK) raised its buyback authorization from $100 million to $500 million alongside 1Q25 earnings results. Management desires flexibility in choppy markets and believes now is the time to increase returns to shareholders through opportunistic buybacks. Hess Midstream (HESM), which has historically repurchased units from its sponsors, is repurchasing $10 million in equity from the public this month.

While only a handful of companies completed buybacks in 1Q25, recent equity weakness may have driven more repurchase activity in 2Q25. Buybacks can be an attractive tool for returning cash to shareholders when stocks are caught up in energy or equity market volatility as was seen in April.

AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMZ is the underlying index for the JPMCFC Alerian MLP Index ETN (AMJB), the ETRACS Alerian MLP Index ETN Series B (AMUB), and the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the ALPS Alerian Energy Infrastructure Portfolio (ALEFX). AMCCD is the underlying index for the Alerian Midstream Energy Dividend UCITS ETF (MMLP.LN).

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