Understanding Midstream's Fee-Based EBITDA & Defensiveness
To understand midstream's defensiveness during periods of volatile commodity prices, it's important to examine the fee-based business models. Midstream has remained defensive and has held up better than broader energy amid weakening oil prices in recent weeks.
ENFR: A High-Yield Energy ETF With Strong Growth
I initiated a position in The Alerian Energy Infrastructure ETF (ENFR) for exposure to North American midstream energy companies, rating it a buy. ENFR offers a diversified portfolio with a 4.45% dividend yield, mitigating risks associated with individual MLPs and C-corps. ENFR simplifies tax reporting with 1099 forms, making it suitable for tax-advantaged accounts like 401k and IRAs.
AI & Data Center Growth Opportunities Continue for Midstream
More midstream names have provided updates on natural gas growth opportunities driven by AI and data centers. Pembina Pipeline Corporation (PPL CN) and Williams Companies (WMB) are the latest midstream players to announce deals to supply natural gas to data centers.
Energy Transfer Strikes Deal With Data Center for Natural Gas Supply
Energy Transfer LP (ET) has entered into a long-term agreement to supply natural gas to a Texas data center. This is a notable update, as midstream companies look to capitalize on natural gas growth opportunities.
6 Midstream Companies in ENFR Grow Dividends
Several midstream companies have already announced increases to fourth-quarter dividends as earnings are underway. The midstream segment is known for offering generous income, which is a primary reason many advisors use energy infrastructure ETFs in portfolios.
Williams' Transco System Experiences Record Loads After Expansion
Midstream corporation Williams (WMB) offered insight into its recently completed Transco expansion project. Transco's Southside Reliability Enhancement has been placed into full service as of last month.
Under the Hood of ENFR's Sector Breakdown
The Alerian Energy Infrastructure ETF (ENFR) provides exposure to the Alerian Midstream Energy Select Index (AMEI). The index is a composite of North American energy infrastructure companies, including C-corps and MLPs.
Drill, Baby, Drill - But Buy ENFR Instead Of The Drillers
Successfully pumping oil and gas is only the first step. It must then be transported to refineries and stored along the way. This is the 'essential' middle step in the process of creating useful fuels.
Three Reasons ENFR Could Perform Well Going Forward
ENFR offers exposure to midstream oil & gas companies, benefiting from stable cash flows and potential growth, with a 4% yield and a 0.35% fee. The ETF is well-positioned under a Republican administration, which may loosen oil & gas regulations, boosting drilling and midstream company volumes. Geopolitical tensions could shift demand to North American oil, benefiting ENFR's midstream holdings.
Williams CFO Describes 3 Growth Opportunities in Natural Gas
There are three key demand drivers in focus for natural gas, which strengthen growth opportunities for midstream players.
4 Midstream Names in ENFR Report Earnings Beat, Raise Guidance
Several midstream names have beat expectations and raised guidance as earnings are underway. Earnings from Williams Companies (WMB), Targa Resources (TRGP), Cheniere (LNG), and DT Midstream (DTM) have surprised to the upside.
Cheapest Energy Infrastructure ETF Crosses $200 Million in AUM
The lowest-cost ETF in the energy infrastructure category has reached a significant trading milestone. The Alerian Energy Infrastructure ETF (ENFR) crossed $200 million in assets under management on Wednesday, ending the day with $204 million.
