Midstream Energy Dividend ETF Report | May 2026

Midstream Energy Dividend ETF Key Takeaway

In April, a ceasefire between the U.S. and Iran early in the month spurred a broader rebound in equities. However, the macro backdrop for energy remains volatile with the Strait of Hormuz still effectively closed. North American energy exports, supported by energy infrastructure companies, remain critical to the global economy.

In energy infrastructure, the focus has shifted to first-quarter earnings and dividend announcements. Initial earnings results in April proved largely constructive given tailwinds from the stronger oil price backdrop. Some smaller independent producers are increasing their output, and a few portfolio companies – such as EDP – have already raised earnings before interest, taxes, depreciation, and amortisation (EBITDA) guidance for 2026.[1] The U.S. Energy Information Administration (EIA) expects U.S. oil production to increase by 220,000 barrels a day in 2027,[2] reversing pre-war forecasts of a decline, as the oil futures curve points to higher-for-longer prices.

For the month of April, Alerian Midstream Energy Corporation Dividend Index (AMCCD) was up +2.67% on a net-total-return basis. Though the broad Energy Select Sector Index (IXE) fell -2.63% for the month, energy remains the best-performing sector in the S&P 500 this year by far. Year-to-date through April, MMLP’s underlying index, the AMCCD, gained +27.35% on a net-total-return basis. This lagged the +37.87% total return for the Energy Select Sector Index (IXE) and the +38.45% total return for the Stoxx 600 Oil and Gas Index (SXEP), which tend to be more sensitive to oil prices, but handily beat the S&P 500, which was up +5.70%.[3]

The continued closure of the Strait of Hormuz has disrupted approximately 20% of global liquefied natural gas (LNG) trade, mostly from partially damaged Qatari facilities that could take three to five years to rebuild.[4] While benchmark LNG prices in Europe and Asia cooled slightly in April, they remain over +40% above pre-war levels.[5] Consequently, liquefaction names like Cheniere Energy (LNG, 3.83% Weight) and Venture Global (VG, 1.31% Weight) remain key near-term beneficiaries capable of selling spot LNG cargoes in a higher-priced international market. Cheniere is typically more than 90% contracted, while VG was 69% contracted for 2026 at the end of February – meaning that only 10% and 31% respectively are currently available for spot sales.[6]

While the war has put oil in focus, the outlook for North American natural gas demand remains robust. U.S. LNG export capacity is projected to double by 2031 based on projects currently under construction,[7] acting as the largest driver of incremental U.S. natural gas demand. U.S. domestic natural gas demand is also expected to increase alongside rising electricity needs, driven by new data centres and large-scale power plants. Companies primarily focused on natural gas infrastructure make up roughly two-thirds of MMLP.

As a reminder, the U.S. and Canadian energy infrastructure companies in MMLP primarily provide services for a fee, limiting their exposure to commodity prices. Companies are seeking to generate free cash flow and returning excess cash to investors through growing dividends and opportunistic buybacks.

Past performance is not indicative of future performance, and when you invest in ETFs your capital is at risk.

Constituent News

Pembina Pipeline (PPL CN, 9.57% Weight) updated its long-term financial outlook, projecting +5-7% compound annual fee-based adjusted EBITDA per share growth through 2030, an increase from its prior +4-6% guidance. This growth is supported by ~CAD$5 billion in sanctioned projects, expected to add CAD$650 million to CAD$700 million in EBITDA, and ~CAD$5 billion in projects under development at an average build multiple of ~7x. Pembina is also gauging customer interest for an expansion of its Alliance natural gas pipeline.[8]

Kinder Morgan (KMI, 9.41% Weight) reported first quarter results above expectations and expects full-year 2026 adjusted EBITDA to exceed its $8.6 billion budget by more than 3%. KMI’s project backlog increased to $10.1 billion, supported by $375 million in new project additions that include three data centre deals. KMI and Phillips 66 (PSX, not in MMLP) are advancing the proposed Western Gateway Pipeline, expecting a final investment decision in the coming months for a mid-2029 in-service date. Western Gateway would transport refined products from the Midwest and Gulf Coast to western markets.[9] [10]

Targa Resources (TRGP, 7.11% Weight) increased its quarterly dividend by +25% to $1.25 per share consistent with prior company guidance.[11]

ONEOK (OKE, 10.39% Weight) reported first quarter results above expectations and raised its full-year 2026 adjusted EBITDA guidance by 1.9%, driven by strong business performance, volume growth, and a constructive market environment. The company expressed confidence in its volume outlook heading into 2027, supported by solid producer activity and strong petrochemical utilisation rates driving ethane tailwinds. Additionally, ONEOK highlighted advanced discussions with hyperscalers to serve data centre power demand in Oklahoma and Texas, noting these opportunities are evolving into larger $400 – $700 million pipeline expansion projects.[12]

*Index weightings as of 30/04/2026

Midstream Energy Dividend ETF Performance
As of 31.08.2026

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31.08.2026

Performance before inception is based on back-tested data. Backtesting is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs your capital is at risk.

[1] https://uk.investing.com/news/company-news/brightspring-q1-2026-slides-45-ebitda-growth-guidance-raised-93CH-4645083

[2] https://uk.finance.yahoo.com/news/us-raises-2027-oil-output-185411605.html

[3] Source: TMX, Bloomberg. Data as of 30.04.2026

[4] https://www.spglobal.com/energy/en/news-research/latest-news/electric-power/031926-qatarenergy-expects-3-5-years-to-repair-lng-facilities-after-strikes

[5] https://balkangreenenergynews.com/iran-war-sends-oil-natural-gas-prices-skyrocketing/

[6] https://lngir.cheniere.com/news-events/press-releases/detail/321/cheniere-announces-positive-final-investment-decision-on

[7] https://www.enerdata.net/publications/daily-energy-news/eia-forecasts-us-lng-export-capacity-nearly-double-2031.html

[8] https://www.pembina.com/media-centre/news/details/04bbe8be-d85e-4500-a6a6-e1aaabf7df73

[9] https://ir.kindermorgan.com/news/news-details/2026/Kinder-Morgan-Reports-First-Quarter-2026-Financial-Results/default.aspx

[10] https://ir.kindermorgan.com/news/news-details/2026/Phillips-66-and-Kinder-Morgan-Advance-Western-Gateway-Pipeline-Project-Following-Successful-Open-Season-2026-jnHolIuCAs/default.aspx

[11] https://www.targaresources.com/news-releases/news-release-details/targa-resources-corp-declares-increase-quarterly-common-3

[12] https://ir.oneok.com/news-and-events/press-releases/2026/04-28-2026-211651993