Midstream Energy Dividend Report | April 2026

Midstream Energy Dividend ETF Key Takeaway

Following the outbreak of conflict with Iran and the effective closure of the Strait of Hormuz, through which flows roughly 20% of global petroleum consumption and 20% of global LNG trade, energy markets experienced severe supply disruptions. The U.S. oil benchmark rose just over +50% during March to $101.38 per barrel,[1] its biggest monthly gain since May 2020.[2] European and Asian LNG benchmarks also gained well over +50%,[3] but U.S. natural gas prices were essentially flat and stayed under $3 per million British thermal unit.[4]

While uncertainty surrounds the near-term outlook and how the war will resolve, there are expected to be prolonged impacts for LNG markets, as damage could curb Qatar’s LNG output for three to five years.[5] Consequently, liquefaction names such as Cheniere Energy (LNG, 4.05% Weight) and Venture Global (VG, 1.60% Weight) performed well in March, seeing a +11.4% and +28.12% increase respectively,[6] [7] as they are able to sell spot LNG cargoes in today’s higher-priced market. Cheniere is typically more than 90% contracted, while VG was 69% contracted for 2026 at the end of February.[8] [9]

Over the long run, the ongoing conflict likely makes the U.S. and Canada much more attractive and secure partners for global energy importers, potentially supporting additional export capacity for LNG and natural gas liquids. Furthermore, the strength in oil prices has alleviated previous production volume concerns. The U.S. Energy Information Administration (EIA) now expects U.S. oil production to reach a new record high in 2027, reversing prior forecasts that pointed to a year-over-year decline.[10]

While the war has put oil in focus, the outlook for North American natural gas demand remains robust, with a proposed new power plant in Ohio expected to be the largest gas-fired power plant in the U.S. (see more below). Companies primarily focused on natural gas infrastructure make up roughly two-thirds of MMLP.

For the month of March, Alerian Midstream Energy Corporation Dividend Index (AMCCD) was up +4.01% on a net-total-return basis. Energy continues to be the best-performing sector in the S&P 500 this year by a landslide and was the only positive sector for the month. Year-to-date through March, MMLP’s underlying index, the Alerian Midstream Energy Corporation Dividend Index (AMCCD), gained +24.04% on a net-total-return basis, notching its best quarter since 2Q20. This lagged the +37.87% total return for the Energy Select Sector Index (IXE) and the +37.14% total return for the Stoxx 600 Oil and Gas Index (SXEP), which marked its best quarter on record, but beat the S&P 500, which was down -4.33% and had its worst quarter since 3Q22.[11]

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 generating 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

Venture Global (VG, 1.60% Weight) reached final investment decision (FID) and the closing of $8.6 billion in project financing for CP2 Phase II, which will bring CP2’s total LNG export capacity to 29 million tonnes per annum (MTPA). [12] On the commercial front, VG secured new five-year sales and purchase agreements with Vitol and Trafigura to supply a combined ~2.0 MTPA of LNG starting in 2026. [13] Additionally, the company favourably resolved major Calcasieu Pass arbitrations by securing a legal victory against Shell (SHEL, not in MMLP) and reaching a commercial settlement with Edison S.p.A., an Italian electric utility.[14] [15] [16]

Kinder Morgan (KMI, 9.84% Weight) was named the sole midstream participant in the SoftBank-led Portsmouth Consortium, which is developing a record 9.2-gigawatt (GW) natural gas power plant in Ohio for AI data centres. KMI’s regional network, including the Tennessee Gas Pipeline, is positioned to potentially supply the $33-billion facility, which is expected to be the largest gas-fired plant in U.S. history. The Ohio Gas Association estimates a project of this scale would require approximately 1.2 billion cubic feet per day (Bcf/d) of natural gas, which is roughly half of what a large natural gas pipeline can transport.[17]

South Bow (SOBO CN, 2.38% Weight) reported fourth quarter results in line with expectations and reaffirmed its 2026 normalised EBITDA guidance of ~$1.03 billion, representing roughly 1% growth compared to 2025. The company confirmed it is evaluating a potential expansion leveraging permitted corridors from the cancelled Keystone XL project to connect with downstream U.S. pipelines. On capital allocation, management emphasised that debt reduction remains the priority, noting that the company will not consider dividend increases or share repurchases until it reaches its 4.0x leverage target. Leverage was at 4.7x to end 2025.[18]

Plains GP Holdings (PAGP, 3.19% Weight) provided an updated timeline for the sale of its Canadian NGL business to Keyera (KEY CN, 2.76% Weight). The transaction is now expected to close in May 2026, delayed from the end of the first quarter of 2026, as both companies continue to advance through the regulatory process. Upon closing, PAGP will transform into a pure-play crude oil midstream company.[19]

*Index weightings as of 31/03/2026

Midstream Energy Dividend ETF Performance
As of 31/03/2026

1M3M6MYTD12M3YSI
Alerian Midstream Energy Dividend UCITS ETF4.05%24.09%21.57%24.09%22.69%97.35%259.82%
Alerian Midstream Energy Corporation Dividend Index*4.01%24.04%21.49%24.04%22.55%97.08%251.23%

 

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/03/2026. 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 and ETCs, your capital is at risk.

*This fund changed its index on the 24th October 2024, from the Alerian Midstream Energy Dividend Index to the Alerian Midstream Energy Corporation Dividend Index. The index performance is a composite of the old index prior to this date and the new index after.

This report was written by, and is the opinion of, VettaFi, the index provider of the Alerian Midstream Energy Dividend Index, the underlying index of MMLP. VettaFi does not issue, sponsor, endorse, sell, or promote MMLP.

Product Details

The Alerian Midstream Energy Dividend UCITS ETF (MMLP) is a UCITS compliant Exchange Traded Fund domiciled in Ireland.

The fund seeks to provide diversified exposure to energy companies involved in the processing, transportation and storage of oil, natural gas and natural gas liquids in the US and Canadian markets and includes MLPs and C-corps.

It is the first UCITS ETF to provide exposure to the energy infrastructure sector via an Alerian index. By employing a synthetic strategy, MMLP aims to enable efficient replication of the index.

Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.

Visit the MMLP Fund Page for more information.

 

[1]https://www.morningstar.com/news/marketwatch/20260330102/a-more-than-50-rise-in-oil-prices-over-the-past-month-may-be-more-than-just-a-short-lived-shock

[2] https://www.cnbc.com/2026/03/30/oil-price-today-wti-brent-yemen-houthis-israel-iran-war.html

[3] https://tradingeconomics.com/commodity/eu-natural-gas/news/529666

[4] https://www.reuters.com/markets/commodities/oil-shock-turbocharges-asia-fx-intervention-risk-2026-04-07/

[5]https://www.reuters.com/business/energy/iran-attack-damage-wipes-out-17-qatars-lng-capacity-three-five-years-qatarenergy-2026-03-19/

[6] https://finance.yahoo.com/quote/LNG/

[7] https://uk.finance.yahoo.com/quote/VG/

[8] https://www.aol.com/articles/cheniere-energy-lng-q4-2025-175601130.html

[9] https://www.investing.com/news/company-news/venture-global-q4-2025-slides-revenue-surges-192-on-cargo-growth-93CH-4535411

[10] https://www.ttnews.com/articles/us-oil-forecast-2027-eia

[11] Source: Vettafi, Bloomberg. Data as of 31.03.2026

[12] https://ventureglobal.com/2026/03/13/venture-global-announces-final-investment-decision-and-financial-close-for-phase-2-of-cp2-lng/

[13]https://investors.ventureglobal.com/news/news-details/2026/Venture-Global-and-Vitol-Announce-New-LNG-Purchase-Agreement/default.aspx

[14]https://investors.ventureglobal.com/news/news-details/2026/Venture-Global-Announces-LNG-Purchase-Agreement-with-Trafigura/default.aspx

[15] https://law.justia.com/cases/new-york/other-courts/2026/2026-ny-slip-op-30753-u.html

[16]https://investors.ventureglobal.com/news/news-details/2026/Venture-Global-and-Edison-Announce-Calcasieu-Pass-Arbitration-Settlement/default.aspx

[17] https://group.softbank/en/news/press/20260321

[18]https://cdn.prod.website-files.com/660c776204e3cec73ea12e3b/69a9fe373c8bf1632f441edb_South%20Bow%20Corporation%20-%20Q4%202025%20News%20Release.pdf

[19] https://ir.plains.com/news-releases/news-release-details/plains-all-american-pipeline-and-plains-gp-holdings-provide

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