AMLP Stock Recent News

TPZ: More Consolidation In The MLP CEF Space

Midstream earnings are well underway, and several names have beat expectations and raised guidance. Earnings from Plains All American Pipeline LP (PAA), Targa Resources (TRGP), ONEOK (OKE), and Enbridge (ENB) have surprised to the upside.

DENVER , Aug. 8, 2024 /PRNewswire/ -- The Alerian MLP ETF (NYSE Arca: AMLP) declared its third quarter 2024 distribution of $0.94 on Wednesday, August 7, 2024. The dividend is payable on August 13, 2024 to shareholders of record on August 8, 2024.

There are growing risks of a recession hitting due to weakening job numbers, rising unemployment, and weakening consumer spending capacity. We share a portfolio of high-yield stocks that should be able to weather a recession quite well. The yields range from 4.5%-14%.

The “juice” in the article title does not refer to orange juice futures like in the classic film “Trading Places,” but electricity. Reuters recently reported that at the power auction for the U.S.'s largest electrical grid operator, PJM Interconnection, prices soared 800% from $269.92 megawatts per day from $28.

Summary MLPs/midstream are not particularly rate sensitive but could see some benefits as interest rates move lower. With fixed income yields moderating, investors may decide to look to MLPs/midstream for income when making new allocations.

Natural gas liquids (NGL) production is a significant growth opportunity for Enterprise Products Partners (EPD). The midstream energy company has seen continued growth in natural gas and NGL production in the Permian.

While midstream earnings ramp up next week, many announcements of second-quarter distributions have already surfaced. Half of the companies in the Alerian MLP Infrastructure Index (AMZI), tracked by the Alerian MLP ETF (AMLP), have declared distributions for the second quarter.

Many investors have recently looked to VettaFi's Head-To-Head ETF Comparison Tool to compare energy infrastructure ETFs: the Alerian MLP ETF (AMLP) and the First Trust North American Energy Infrastructure Fund (EMLP). While both funds offer exposure to the energy infrastructure space and boast similar tickers, the funds are very different.

Alerian MLP ETF has steadily appreciated past pre-pandemic levels, generating large amounts of yield for shareholders. The AMLP ETF has outpaced the risk-free rate of return with its dividend yield and is expected to continue growing its dividend. AMLP could continue to appreciate as demand for energy grows, supermajors increase production, and MLPs see increased demand for their services.