Beyond the Numbers: Midstream 3Q Earnings Highlights

Core Insights - The midstream/MLP earnings season for the third quarter saw mostly in-line results, with expectations for a softer quarter leading to moderated estimates [1][9] - Notable announcements included acquisitions, data center deals, and plans for dividend increases, indicating robust growth opportunities in energy infrastructure, particularly for natural gas [9] Company Summaries - MPLX (MPLX): Reported in-line results with $100 million in buybacks; management targets mid-single-digit EBITDA growth and 12.5% distribution growth for the next few years [2] - Targa Resources (TRGP): Adjusted EBITDA exceeded consensus; expects a 25% increase in quarterly dividend to $1.25 per share by May 2026 and at least 10% growth in Permian volumes for 2025 [3] - DT Midstream (DTM): Beat-and-raise quarter with a $50 million increase in 2025 adjusted EBITDA guidance to $1.13 billion; reaffirmed 2026 adjusted EBITDA outlook [4] - Western Midstream (WES): Results exceeded expectations; anticipates ending the year at the high end of 2025 adjusted EBITDA guidance [5] - Enterprise Products Partners (EPD): Results fell short of consensus; increased repurchase authorization to $5 billion and raised 2025 organic growth capex guidance to ~$4.5 billion [6] - Williams (WMB): Announced in-line results and increased the Socrates power project budget to $2 billion; focused on investment in Woodside's Louisiana LNG [7] - Energy Transfer (ET): Results fell short of estimates; expects full-year adjusted EBITDA below guidance range but highlighted growth opportunities in natural gas and data centers [8] - Sunoco (SUN): In-line quarter overshadowed by Parkland integration; expects leverage below 4x within 12 months and over $250 million in synergies [10] - Plains All American (PAA/PAGP): In-line results with acquisition of remaining interest in EPIC; expects mid-teens returns and a 2026 EBITDA multiple of 10x [11] - Kinder Morgan (KMI): In-line results; pursuing $10 billion in potential projects primarily around natural gas [12] - TC Energy (TRP CN): In-line results; expects 6%-8% year-over-year adjusted EBITDA growth in 2026 [13] - Enbridge (ENB CN): In-line results; reaffirmed 2025 guidance and sanctioned $3 billion of projects [14] - Cheniere Energy (LNG): Adjusted EBITDA below consensus; raised distributable cash flow guidance midpoint by $400 million to $5 billion [15] - ONEOK (OKE): Slightly above consensus results; on pace to realize $250 million in synergies in 2025 [16] - Pembina (PPL CN): In-line results; narrowed 2025 guidance range and announced a 20-year agreement with Petronas [17] Outlook and Trends - Investors should watch for guidance from companies like Kinder Morgan, Pembina, and Enbridge in December for 2026 [18] - A cautious oil outlook may contribute to uncertainty around 2026, but several companies expressed constructive comments regarding growth [19] - The Alerian MLP Infrastructure Index (AMZI) and Alerian Midstream Energy Select Index (AMEI) were yielding 8.0% and 5.7%, respectively, indicating strong dividend income potential [19]