Rising data center energy demand, stable fee-based revenues and pipeline projects are brightening the Zacks Oil and Gas - Pipeline MLP industry's outlook. EPD, ET and PAA are well poised to gain.
Following a careful analysis of the Zacks Oil and Gas - Refining & Marketing MLP industry, we advise keeping an eye on three stocks: WES, GLP and NGL.
Western Midstream Partners offers an ~8% yield with above-average distribution growth, driven by aggressive acquisition-fueled expansion in the Permian Basin. WES trades at a 10.0x EV/EBITDA, justified by its robust EBITDA growth and concentrated, high-potential asset footprint. Distribution growth has outpaced industry peers, and leverage has fallen, despite debt-financed acquisitions.
Quarterly equity repurchases for midstream MLPs and corporations remained healthy in 2Q26, keeping pace with first-quarter levels. Cheniere Energy (LNG) spent $550 million on buybacks, and familiar players also used their authorizations during the quarter.
MLP SE (MLPKF) Q2 2026 Earnings Call Transcript
For the second quarter of 2026, sequential dividend growth across the broad Alerian Midstream Energy Index (AMNA) came primarily from MLPs, while most midstream corporations maintained their dividends. On a year-over-year basis, the vast majority of midstream companies have grown their payouts, and growth is expected to continue.
Stable fee-based revenues, rising data-center gas demand and major growth projects support the Zacks Oil and Gas - Pipeline MLP industry. EPD, ET and OKE are well-positioned to benefit.
Pipeline partnerships get filed under “boring” for a reason. They collect tolls on hydrocarbons and mail out K-1s at tax time.
Iran tensions keep oil elevated, boosting the appeal of high-yield MLP ETFs. AMZA, AMLP and MLPI offer income with resilient midstream exposure.
Reliable distribution growth remains one of the most important tailwinds for midstream MLPs. After all, investors often allocate to this space primarily for its attractive yield and consistent income.
MLPI takes a hybrid approach to investing in North American energy infrastructure.
Energy Transfer remains a Strong Buy, driven by robust 12.5% adj. EBITDA growth targets and a compelling income profile. ET trades at a 26.2% EV/EBITDA discount to peers despite sector-leading growth and resilient segment performance. Strategic investments, export terminal expansions, and SUN's acquisition-driven EBITDA surge reinforce ET's forward growth trajectory.