Midstream Energy Dividend ETF Report | July 2026

Midstream Energy Dividend ETF Key Takeaway

In July, the broader energy sector rallied as the fragile ceasefire between the U.S. and Iran broke down and conflict resumed. Iran declared the Strait of Hormuz closed once again, and Saudi cargoes through the Bab el-Mandeb strait, a route that handled roughly 6% of global oil supply in 1Q26,[1] faced attacks. The U.S. oil benchmark surged 21.83% to $84.67 per barrel, while U.S. natural gas prices fell 16.12% to $2.75 per million British thermal unit.[2]

Crude futures for 2027 are over $10 per barrel higher than at the start of the year,[3] largely due to global inventory depletion. The International Energy Agency estimates total Middle Eastern supply losses reached 1.3 billion barrels through late June.[4]

Midstream companies began reporting second-quarter earnings and dividend announcements in late July. Initial results proved largely constructive given tailwinds from the stronger oil price backdrop. Looking ahead, the U.S. Energy Information Administration (EIA) continues to expect domestic oil production to reach a new record high in 2027.[5] This volume uplift is further supported by the ongoing alleviation of natural gas takeaway constraints in the Permian Basin.[6]

For the month of July, MMLP’s underlying index, the Alerian Midstream Energy Corporation Dividend Index (AMCCD) was up +2.75% on a net-total-return basis. The broad Energy Select Sector Index (IXE) gained +11.96% for the month on a total-return basis, and energy is now the best-performing sector in the S&P 500 this year. Year-to-date through July, MMLP’s underlying index gained +28.71% on a net-total-return basis. This lagged the +35.00% total return for the Energy Select Sector Index (IXE) and the +34.66% total return for the Stoxx 600 Oil and Gas Index (SXEP), which tend to be more sensitive to oil prices. Midstream has handily beat the S&P 500, which was up +10.14%.[7]

Middle Eastern supply disruptions have reinforced the global appeal of North American energy exports, paving the way for rapid capacity expansions for crude, liquefied natural gas (LNG), and natural gas liquids (NGLs). [8] U.S. LNG export capacity is projected to roughly double by 2031 based on projects currently under construction, acting as the largest driver of incremental U.S. natural gas demand.[9]

U.S. domestic natural gas demand is also expected to increase alongside rising electricity needs, as electrification, coal-to-gas switching, and new data centres drive power demand. Companies are executing on these substantial growth opportunities, driving collective backlogs for six holdings over $150 billion. [10] Companies primarily focused on natural gas infrastructure make up roughly two-thirds of MMLP by weighting.[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[12] and opportunistic buybacks.[13]

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

Constituent News

Kinder Morgan (KMI, 10.11% Weight) reported second quarter results above expectations and expects full-year 2026 adjusted EBITDA to be more than 5% favourable to its $8.6 billion budget.[14] During the quarter, KMI placed $660 million in expansion projects into service, including the TGP Cumberland Project, Hiland Express, and Gulf Coast Express. The project backlog ended at $9.6 billion, expected to generate an aggregate first-full-year project EBITDA multiple of ~5.6x, with the board providing contingent approval on nearly $400 million in additional projects. KMI also announced new pipeline and tank expansions in the Houston Ship Channel hub.

TC Energy (TRP CN, 9.60% Weight) reported second quarter results above expectations and expects to reach the upper end of its 2026 adjusted EBITDA guidance of C$11.6 billion – C$11.8 billion. The company sanctioned C$700 million in new growth projects serving power and data centre demand, bringing year-to-date sanctions to C$3.0 billion. TRP’s pending backlog grew to C$7.0 billion, while its longer-term origination backlog expanded to over C$20.0 billion, with approximately 67% driven by power generation.[15]

Williams (WMB, 9.84% Weight) secured a $5.34 billion capital commitment from a Blackstone-led group, including Apollo and KKR, to fund its five behind-the-meter Power Innovation projects. Under the agreement, Blackstone will receive a 49% noncontrolling equity interest, while Williams retains a 51% stake and maintains full commercial and operational control, alongside a buyout option between years 7 and 14. [16]

Pembina Pipeline (PPL CN, 8.79% Weight) reported second quarter results in line with expectations and reaffirmed its full-year 2026 adjusted EBITDA guidance.[17] Alongside earnings, the company sanctioned the Greenlight Electricity Centre (GLEC).[18] Developed in partnership with Morgan Stanley Infrastructure Partners, the $4.6 billion gross ($2.3 billion net to Pembina) GLEC gas-fired power plant will provide dedicated power for a Meta (META, not in MMLP) data centre. Once operational in late 2030, GLEC is projected to generate ~$310 million in annual run-rate adjusted EBITDA net to Pembina.

*Index weightings as of 31/07/2026

Midstream Energy Dividend ETF Performance
As of 31.08.2026

MMLP (Fund)AMCCDN* (Index)
1M1.99%1.99%
3M6.89%6.87%
6M10.15%10.07%
YTD31.37%31.26%
12M32.83%32.71%
3Y94.75%95.18%
Since Inception (27/07/2020)280.93%271.68%

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

[1] https://www.eia.gov/outlooks/steo/report/energysecurity/article.php

[2] Source: VettaFi, Bloomberg. Data as of 31.07.2026

[3] Source: VettaFi, Bloomberg. Data as of 31.07.2026

[4] https://www.iea.org/commentaries/how-global-oil-supplies-have-readjusted-to-help-fill-the-huge-gap-left-by-the-strait-of-hormuz-shock

[5] https://www.eia.gov/outlooks/steo/

[6] https://etfdb.com/energy-infrastructure-content-hub/tailwinds-power-strong-midstream-first-half/

[7] Source: VettaFi, Bloomberg. Data as of 31.07.2026

[8] https://etfdb.com/energy-infrastructure-content-hub/tailwinds-power-strong-midstream-first-half/

[9] https://www.eia.gov/naturalgas/data.php#imports

[10] https://etfdb.com/energy-infrastructure-content-hub/robust-gas-backlogs-drive-growth/

[11] Source: VettaFi. Data as of 31.07.2026

[12] https://etfdb.com/energy-infrastructure-content-hub/midstream-growth-trend-continues/

[13] https://etfdb.com/energy-infrastructure-content-hub/1q26-midstream-buybacks-steady-start/

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

[15] https://www.tcenergy.com/announcements/2026/2026-07-30-tc-energy-reports-strong-second-quarter-2026-operating-and-financial-results/

[16] https://investor.williams.com/news-releases/news-release-details/williams-delivers-strong-second-quarter-2026-results-announces

[17] https://www.pembina.com/media-centre/news/details/fa13b9e4-bbc0-44d0-9ab6-88c72cbd54e5

[18] https://www.pembina.com/media-centre/news/details/3403fb77-2257-466b-a8e2-f043f4cd4650

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