The midstream sector is kicking off 2026 with a robust display of financial health, as a significant wave of distribution and dividend increases sweeps through the industry.
See more: Midstream Distribution Growth: Plains & Enterprise Lead New Wave of Increases
Underscoring the segment’s commitment to returning capital to shareholders, several prominent midstream names have announced payout hikes this month. For financial advisors, these updates reinforce the case for midstream as a top source of reliable, growing income in portfolios.
Payout Growth Across Midstream
Yesterday, Williams (WMB) announced an increase to its quarterly cash dividend to $0.525 from $0.50, reflecting a 5% increase from the previous payout.
Maintaining its predictable growth trajectory, Plains All American (PAA) / (PAGP) increased its quarterly distribution to $0.4175 per unit, representing a 9.9% increase. This move aligns perfectly with the guidance management previously provided to the market, further cementing the sector’s reputation for transparency.
Enterprise Products Partners (EPD) continued its multi-decade track record of payout growth by raising its distribution to $0.55, a nearly 1% increase from the prior payout. Additionally, ONEOK (OKE) announced a 4% sequential (QoQ) increase to $1.07 per share.
Broad Sector Momentum
Rounding out the sector-wide momentum, several other midstream players solidified their commitment to returning value to shareholders. Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% YoY rise from the $0.325 paid in the first quarter of 2025. Furthermore, Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% YoY increase. HESM is targeting at least 5% annual distribution growth through 2028.
Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% YoY increase compared to the $0.8865 paid a year ago. SUN is targeting at least 5% distribution growth for 2026.
Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase compared to the prior quarter. Management attributed this flexibility to strong free cash flow generation in the latter half of 2025 and a successful multi-year strategy to improve leverage and credit metrics.
Kinetik (KNTK) raised its payout to $0.81, which reflects a 4% sequential increase. Finally, Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% YoY rise from the $1.10507 distribution paid in early 2025.
ETF Exposure: AMLP and ENFR
Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are midstream names found in both the Alerian MLP ETF (AMLP ) and the Alerian Energy Infrastructure ETF (ENFR ).
AMLP, the largest MLP ETF currently trading, tracks the Alerian MLP Infrastructure Index (AMZI), a cap-weighted composite of energy infrastructure MLPs. Meanwhile, ENFR tracks the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies.
Since Williams, ONEOK, and Kinetik operate as C-corps, only ENFR holds them.
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