Energy infrastructure investments were well positioned in 2024, due to the segment’s ability to offer generous income regardless of the interest rate environment.
Additionally, midstream is less sensitive to moves in commodity prices compared to other sectors of energy, given midstream’s fee-based business models, which support stable cash flows.
These were the five top-read stories on energy infrastructure in 2024:
1. Why You Should Consider MLPs for Your Income Portfolio
Many investors’ search for income brought them to MLPs in 2024. In this piece, VettaFi head of energy research, Stacey Morris, explained that MLPs’ special tax treatment and stable cash flows have allowed them to historically pay generous distributions. Morris discussed reasons that investors can be confident in MLP payouts. Furthermore, the outlook for MLP payouts remains constructive heading into 2025.
2. Raymond James Analyst Shares Top Picks, Midstream Investment Opportunities
VettaFi staff writer Elle Caruso sat down with Raymond James analyst J.R. Weston in January to discuss the outlook for energy commodities and the midstream space. Weston offered his take on overlooked investment opportunities, as well as his top picks.
3. JPMorgan Offers Exposure to MLPs via New ETN Maturing in 2044
JPMorgan Chase & Co. added a new exchange-traded note to its lineup in January. The Alerian MLP Index ETN (AMJB), which provides exposure to MLPs, matures in 2044.
AMJB tracks the Alerian MLP Index (AMZ), a capped, float-adjusted, cap-weighted index that serves as the leading measure of energy infrastructure MLPs.
4. U.S. LNG Export Capacity to Rise 80% by 2028
Growth opportunities in liquefied natural gas (LNG) was a key theme in 2024, as global demand for LNG has grown over the past decade. VettaFi energy research analyst Philip Segal recapped the U.S. LNG projects under development as of May.
Additionally, Segal offered solutions for investors looking to take advantage of long-term growth in LNG.
5. MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income
The potential for tax-deferred income is one of the primary attractions of MLP investments. Morris revisited the tax advantages of MLPs and MLP ETFs, as the space is well-known for its generous yields.
Morris stepped through the tax advantages of MLPs in a simplified manner, making this article a good resource for advisors looking to explain the tax benefits associated with distributions from MLPs or MLP ETFs to clients.
To learn about the outlook for MLPs/midstream in 2025, please join our upcoming webcast on Thursday, January 9, at 1 p.m. ET (register here).
For more news, information, and analysis, visit the Energy Infrastructure Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMJB, for which it receives an index licensing fee. However, AMJB is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMJB.
