Amid tariff headlines and extreme market volatility, midstream MLPs and corporations have been announcing their quarterly dividends. Companies are executing well in prioritizing returns to shareholders, primarily through dividends but also with buybacks.
Ten names in the Alerian Midstream Energy Select Index (AMEI) have declared their 1Q25 dividends (paid in 2Q25), representing 38.8% of the index by weighting as of April 10. This includes five names that announced sequential increases.
Notably, last week, C-Corp Targa Resources (TRGP) raised its quarterly dividend by 33% to $1.00 per share, delivering on growth that was initially telegraphed in November 2024.
Other companies announced dividend increases alongside their 4Q24 results. In February, TC Energy (TRP) announced a 3.3% sequential increase to its April dividend. Similarly, DT Midstream (DTM) raised its April 2025 payout by 12%, while Gibson Energy (GEI:CN) hiked its April dividend by 5%. Aris Water Solutions (ARIS) announced a 33% increase to its 1Q25 dividend to $0.14 per share.
Other names have maintained their payouts while also announcing 1Q25 buyback activity. Bellwether MLP Enterprise Products Partners (EPD) declared its quarterly distribution of $0.535 per unit last week and highlighted $60 million in equity repurchases during the first quarter. C-Corp Antero Midstream (AM) also maintained its payout, while announcing $28.6 million in 1Q25 equity repurchases.
South Bow (SOBO) announced its 1Q25 dividend in March, maintaining at $0.50 per share. Plains All American (PAA) maintained its distribution at $0.38 per unit, having increased its payout earlier this year by 20%. MLP Genesis Energy (GEL) also held its distribution steady. Along with EPD, PAA and GEL are constituents of the Alerian MLP Infrastructure Index (AMZI).
While several companies have yet to announce their payouts, more growth is expected. For example, Kinder Morgan (KMI) previously guided to an annualized dividend of $1.17 per share for 2025, which represents an increase of 1.7%. A handful of midstream names, mostly MLPs, have been consistently growing their payouts each quarter (read more).
Despite market volatility and oil price weakness, we continue to believe that midstream companies are well-positioned to execute on returns to shareholders, namely dividends. As of April 11, AMZI was yielding 7.8% compared to its three-year average of 7.4%. AMEI was yielding 5.8% compared to its three-year average of 6.0%.
AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the Alerian Energy Infrastructure Portfolio (ALEFX).
Related research:
4Q24 Midstream/MLP Dividend Recap: Growth Continues
Midstream/MLP 4Q Buybacks Add to Robust 2024
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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