Recent announcements from midstream names have reinforced the segment’s commitment to shareholder returns. Distribution growth serves as an indicator of sector health, highlighting the midstream segment’s ability to provide stable income despite broader market volatility.
On January 5, Plains All American (PAA/PAGP), announced a notable increase to its quarterly distribution. In line with previous guidance, Plains raised its quarterly payout to $0.4175 per unit. This represents a 9.9% increase over the previous distribution level.
Enterprise Products Partners (EPD) followed on January 8, declaring a quarterly distribution of $0.55 per unit, a 0.9% increase from the prior $0.545. While modest, EPD typically raises its distribution twice a year and this increase marks a continuation of EPD’s multi-decade track record of payout growth. EPD also announced $50 million in equity repurchases during 4Q25 to bring its total repurchases for 2025 to approximately $300 million.
These updates act as a bellwether for the midstream space, signaling the ability to generate excess free cash flow and a preference for returning value to unitholders. Fee-based business models support midstream distribution growth by insulating cash flows from the direct impact of commodity price swings.
2026 Guidance: Sunoco and Energy Transfer Project Continued Growth
The positive outlook is further supported by recent guidance from Sunoco (SUN) and Energy Transfer (ET).
Sunoco has announced 2026 guidance, targeting growth of at least 5%, with plans to announce increases on a quarterly basis. Meanwhile, Energy Transfer reiterated its long-term strategy, targeting an annual distribution growth rate of 3% to 5%.
ETF Exposure via AMLP and ENFR
For investors looking to gain exposure to the space, these distribution hikes directly impact key ETFs including 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 midstream energy infrastructure companies.
The consistent upward trajectory of these distributions underscores the appeal of midstream as a source of income in 2026. As of January 8, AMZI and AMEI were yielding 7.7% and 5.6%, respectively.
For the latest updates on the energy infrastructure space as well as a look ahead, don’t miss our next webcast, “What’s in the Pipeline for MLPs/Midstream in 2026?” on Wednesday, January 14, 2026 at 2:00 pm ET. Follow the link here to register.
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