Midstream Energy Dividend ETF Report | September 2026

Midstream Energy Dividend ETF Key Takeaway

In August, U.S. energy infrastructure companies were supported by strong second-quarter earnings as the U.S.-Iran conflict remained at an impasse with no active negotiations over the Strait of Hormuz. Commodity prices saw modest monthly gains, with the U.S. oil benchmark rising +1.29% to $85.76 per barrel, while U.S. natural gas prices rose +6.84% to $2.94 per million British thermal unit.[1]

Ongoing Middle East disruptions continue to result in severe global inventory depletion, which may keep the oil futures curve “higher for longer” even if maritime traffic eventually normalises. International natural gas benchmarks reached their highest levels since early 2023 with the Strait of Hormuz effectively closed.[2]

Midstream companies reported broadly constructive second-quarter earnings in August, underscoring the sector’s improving outlook and prompting several companies to raise full-year guidance.[3] Looking ahead, the U.S. Energy Information Administration (EIA) now forecasts domestic oil output will reach a new record high in 2027, averaging 14.2 million barrels per day.[4] This volume uplift is further supported by the ongoing alleviation of natural gas takeaway constraints in the Permian Basin.[5]

For the month of August, MMLP’s underlying index, the Alerian Midstream Energy Corporation Dividend Index (AMCCD) was up +1.99% on a net-total-return basis. The broad Energy Select Sector Index (IXE) gained 7.38% for the month on a total-return basis, and energy remains the best-performing sector in the S&P 500 this year by a wide margin. Year-to-date through August, MMLP’s underlying index gained +31.26% on a net-total-return basis. This lagged the +44.97% total return for the Energy Select Sector Index (IXE) and the +34.57% 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 +13.14%.[6]

Middle Eastern supply disruptions continue to reinforce the global appeal of North American energy exports– in May US crude exports increased by 50 million barrels compared to February.[7] Total U.S. liquefied natural gas (LNG) export capacity remains on track to roughly double by 2031 based on projects currently under construction,[8] 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 centers drive power demand. Companies are executing on these substantial growth opportunities, driving collective backlogs for six holdings over $160 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

Targa Resources (TRGP, 8.52% Weight) reported second quarter results above expectations, driven by record Permian volumes, and expects full-year 2026 adjusted EBITDA toward the upper end of its $5.7 billion – $5.9 billion guidance range.[14] The company updated its 2026 net growth capex estimate to ~$5.0 billion and placed several key projects into service, including the Train 11 fractionator and Delaware Express expansion. Additionally, TRGP announced new 20-year fee-based agreements with ExxonMobil (XOM, not in MMLP) underpinning three new Delaware processing plants and the Bull Run II pipeline, all expected in service in 1H28.[15]

ONEOK (OKE, 10.43% Weight) reported second quarter results in line with expectations and raised the lower end of its full-year 2026 adjusted EBITDA guidance range by 2.5%.[16] Alongside earnings, OKE announced the roughly $4.4 billion acquisition of Brazos Midstream’s Permian Midland Basin assets, funded by a $9.0 billion minority equity investment from Apollo (APO, not in MMLP).[17] The Apollo capital will also extinguish $5.0 billion in debt to accelerate deleveraging, while the accretive Brazos deal will double OKE’s Midland Basin processing capacity. Operationally, the company advanced several processing plant expansions and highlighted new commercial agreements to supply natural gas for 1 GW of power demand and late-stage AI data centres.

Williams (WMB, 10.16% Weight) reported second quarter results in line with expectations and raised its 2026 adjusted EBITDA guidance from $8.3 billion – $8.5 billion, an increase of 1.5% at the midpoint, driven by its $5.5 billion acquisition of Momentum Midstream.[18] Management increased 2026 growth capex and raised its long-term adjusted EBITDA growth target to 11+% from 10+%. The company highlighted a $15.5 billion project backlog, announcing new immediate expansions tied to the Momentum footprint, while finalising a $5.34 billion financing joint venture with Blackstone (BX, not in MMLP) and advancing several projects to serve growing power demand.

Kinder Morgan (KMI, 9.97% Weight), alongside Phillips 66 (PSX, not in MMLP) and HF Sinclair (DINO, not in MMLP), sanctioned the joint venture Western Gateway Pipeline system, a ~$5.0 billion refined products pipeline serving Arizona and California.[19] The project has a design capacity of 230 thousand barrels per day (MBpd), which is expandable in the future without requiring new pipe. KMI is contributing existing pipelines alongside a ~$250 million cash contribution, while its partners will fund the remaining capital for new construction and pipeline reversals.

Pembina Pipeline (PBA, 8.61% Weight) reported second quarter adjusted EBITDA of C$1,064 million, reiterating its guidance range of $4.35 billion to $4.55 billion, noting results are trending towards the midpoint of the range.[20] Likewise Enbridge (ENB, 8.38% Weight) reported reaffirmed its existing 2026 guidance, with its secured backlog standing at $41 billion.

It is important to note that announced projects are not scheduled into service until 2028 and carry execution, cost and financing risk, with a material portion of the capital being provided by third parties. These guidance ranges, growth targets and in-service dates are forward looking and may not be achieved.

*Index weightings as of 31/08/2026

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.

IMPORTANT INFORMATION This document is approved for professional use only.

Communications issued in the UK

The content in this document is issued by HANetf Limited (“HANetf”) and approved by Privium Fund Management (UK) Limited (“Privium”). HANetf is an appointed representative of Privium, which is authorised and regulated by the Financial Conduct Authority. The registered office of Privium is The Shard, 24th Floor, 32 London Bridge Street, London, SE1 9SG

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Disclaimers

Past performance is not a reliable indicator of future performance. The price of the Products may vary and they do not offer a fixed income. This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes. Forward looking statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. The content of this document is for information purposes and for your internal use only, and does not constitute an investment advice, recommendation, investment research or an offer for sale nor a solicitation of an offer to buy any Product or make any investment.

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[1] Source: VettaFi, Bloomberg. Data as of 31.08.2026

[2] Source: VettaFi, Bloomberg. Data as of 31.08.2026

[3] https://etfdb.com/energy-infrastructure-content-hub/strong-midstream-earnings-boost-outlook/

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

[5] https://etfdb.com/energy-infrastructure-content-hub/midstream-increases-natural-gas-infrastructure/

[6] Source: VettaFi, Bloomberg. Data as of 31.08.2026

[7] https://www.eia.gov/dnav/pet/pet_move_exp_dc_NUS-Z00_mbbl_m.htm

[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/midstream-increases-natural-gas-infrastructure/

[11] Source: VettaFi. Data as of 31.08.2026

[12] https://etfdb.com/energy-infrastructure-content-hub/mlps-drive-growth/

[13] https://etfdb.com/energy-infrastructure-content-hub/momentum-continues-2q26-midstream-mlp-buybacks/

[14] https://www.targaresources.com/news-releases/news-release-details/targa-resources-corp-reports-record-second-quarter-2026

[15] https://www.targaresources.com/news-releases/news-release-details/targa-resources-corp-announces-20-year-agreements-exxonmobil-and

[16] https://ir.oneok.com/news-and-events/press-releases/2026/08-03-2026-211637100

[17] https://ir.oneok.com/news-and-events/press-releases/2026/08-30-2026-214020927

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

[19] https://ir.kindermorgan.com/news/news-details/2026/Phillips-66-Kinder-Morgan-and-HF-Sinclair-Announce-Final-Investment-Decision-for-Western-Gateway-Pipeline-2026-eaM3IVIktJ/default.aspx

[20] https://mms.businesswire.com/media/20260730920620/en/2864782/1/Pembina_-_Q2_2026_Press_Release_-_VF.pdf

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