Summary The Alerian MLP Infrastructure Index (AMZI) underlies the Alerian MLP ETF (AMLP), which is celebrating its 15-year anniversary. AMZI is a composite of energy infrastructure MLPs with a quality focus.
AMLP offers exposure to energy infrastructure MLPs with no K1 tax hassle, making it accessible for most investors. The ETF provides a diversified 8% yield, a rare find in today's market, despite its relatively high 0.85% expense ratio. MLPs are undervalued due to S&P 500 exclusion, presenting a unique value opportunity as passive investing lifts other sectors.
Conservative capital spending by upstream players and gradual shifting to renewables may hurt the demand for midstream players??? assets. Enterprise (EPD), Energy Transfer (ET) and Plains All American Pipeline (PAA) are surviving the industry challenges.
Summary The natural gas opportunity for midstream remains robust with growing project backlogs and new project announcements. While oil basins are getting gassier, the Permian should be able to deliver oil production growth over the coming years.
Corporate dividends and MLP distributions are two forms of company payouts for investors seeking income. While both dividends and distributions provide income, they stem from fundamentally different entity structures and carry distinct tax implications that are crucial for investors to understand.
AMLP pays a steady 7.8% dividend and tracks top energy MLPs. The ETF has a five-year uptrend with minimal drops. It holds 15 key MLPs, offering broad exposure despite the 0.85% fee.
WES remains my top midstream pick due to its attractive yield-to-risk profile, even after a strong 17.8% total return since my last piece. Even after the recent run-up in the unit price, Western Midstream offers one of the most attractive yields in the MLP space - almost 9%. In the article, I provide details why I have remained bullish on WES as a pure-play income investor.
Energy Transfer offers stable, fee-based cash flows with 90% of EBITDA from long term contracts, making it resilient to energy market volatility. The pipeline operator and LNG investor boasts a high 7.5% distribution yield, a strong coverage profile, and an attractive valuation relative to industry peers, supporting ongoing income growth. Recent acquisitions and organic investments, particularly in the LNG realm, are set to drive EBITDA and distribution growth, reinforcing the bullish investment case.
AMLP offers direct exposure to US midstream operators with an attractive 8% yield, benefiting from stable, dividend-paying companies. The ETF recently increased its dividend and could reach a $1 payout, supporting a price target of $52.25–$53.33 if yields normalize. Key risks include sector concentration, potential declines in US oil and gas production, and sensitivity to dividend cuts or trade tensions.
Midstream/MLP ETFs have recorded consistently strong flows in 2025, as the segment is on track to outperform the broader market during the first half of the year.
The Alerian MLP ETF (AMLP) has generated attractive returns for investors in recent years. It is outperforming the S&P 500 so far in 2025, yet MLP valuations have not become overextended.
SUMMARY MLP/midstream investment products can help investors access the MLP space without the potential headaches of a Schedule K-1. Products can mitigate some potential risks with midstream investing and help avoid Unrelated Business Taxable Income (UBTI) for tax-exempt organizations and retirement accounts.