First-quarter earnings are well underway for midstream companies with some notable developments for investors.
Several midstream names have reaffirmed full-year 2025 financial guidance. This is a reassuring update for investors, particularly as oil prices have weakened in the wake of tariff news.
Midstream is more resilient than other energy subsectors as the segment has lower commodity price exposure and fee-based business models, which support stable cash flows. Strong free cash flow generation and EBITDA growth from fee-based business models has supported continued dividend growth.
ONEOK (OKE), Hess Midstream (HESM), DT Midstream (DTM), Kinder Morgan (KMI), Targa Resources TRGP, and TC Energy (TRP CN) are the latest midstream players to reaffirm 2025 guidance.
The six midstream names can be found in the Alerian Energy Infrastructure ETF (ENFR ). The fund offers exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies, including C-corps and MLPs.
Midstream Companies Provide Updates on Full-Year Guidance
Targa beat estimates for adjusted EBITDA for the first quarter and reaffirmed full-year guidance of $4.75 billion at the midpoint. The company spent nearly $125 million on buybacks in the first quarter and $214 million in aggregate through April.
TC Energy reported earnings in line with analyst estimates and reaffirmed full-year comparable adjusted EBITDA guidance of $10.8 billion at the midpoint.
ONEOK fell shy of adjusted EBITDA expectations for the first quarter but reaffirmed full-year adjusted EBITDA guidance of $8.225 billion at the midpoint. The company spent $17.4 million on buybacks during the first quarter, bringing total buybacks under its $2 billion authorization to $189 million since January 2024.
DT Midstream reported adjusted EBITDA generally in line with expectations. The company also reaffirmed 2025 adjusted EBITDA guidance of $1.125 billion at the midpoint.
Hess Midstream reported earnings in line with expectations and reaffirmed full-year adjusted EBITDA guidance of $1.26 billion at the midpoint. The midstream player expects adjusted EBITDA to be 11% higher in the second half of the year.
Finally, Kinder Morgan has reaffirmed that natural gas demand growth will have a substantial positive impact on the company. Kinder Morgan expects to exceed the 2025 guidance it provided by at least the contributions from the $640 million Outrigger acquisition.
See more: KMI Reports Q1 Earnings: What Investors Need to Know
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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