Core Viewpoint - Antero Midstream Corporation declared a cash dividend of $0.225 per share for Q4 2025, marking the 45th consecutive quarterly dividend since its IPO in November 2014 [2]. Group 1: Dividend and Share Repurchase - The cash dividend of $0.225 per share translates to an annualized rate of $0.90 per share, payable on February 11, 2026, to stockholders of record as of January 28, 2026 [2]. - During Q4 2025, the company repurchased approximately 2.7 million shares for about $48 million, with $336 million remaining under its $500 million authorized share repurchase program as of December 31, 2025 [2]. Group 2: Earnings Release and Conference Call - Antero Midstream plans to release its Q4 2025 earnings on February 11, 2026, after the close of trading on the New York Stock Exchange [3]. - A conference call to discuss the financial and operational results is scheduled for February 12, 2026, at 10:00 am MT, with a Q&A session for security analysts to follow [3]. Group 3: Company Overview - Antero Midstream Corporation is a Delaware corporation that owns, operates, and develops midstream gathering, compression, processing, and fractionation assets located in the Appalachian Basin, along with integrated water assets primarily servicing Antero Resources Corporation's properties [4].

Core Insights - Energy Transfer LP is a leading midstream energy platform in North America, focusing on aggressive growth through new pipeline acquisitions [1] - The company is positioned to benefit from attractive growth prospects due to secular trends in the energy sector [1] Company Overview - Energy Transfer LP operates primarily in the midstream segment of the energy industry, which involves the transportation and storage of energy products [1] - The company is actively pursuing new pipeline acquisitions to enhance its operational capacity and market presence [1] Industry Trends - The midstream energy sector is experiencing favorable conditions that may lead to significant growth opportunities for companies like Energy Transfer LP [1] - Secular trends in energy consumption and infrastructure development are expected to drive demand for midstream services [1]

Core Insights - Energy Transfer LP is a leading midstream energy platform in North America, focusing on aggressive growth through new pipeline acquisitions [1] - The company is positioned to benefit from attractive growth prospects due to secular trends in the energy sector [1] Company Overview - Energy Transfer LP operates primarily in the midstream segment of the energy industry, which involves the transportation and storage of energy products [1] - The company is actively pursuing new pipeline acquisitions to enhance its operational capacity and market presence [1] Industry Context - The midstream energy sector is experiencing favorable conditions that support growth, driven by increasing energy demand and infrastructure development [1] - Secular trends in the energy market are expected to provide additional growth opportunities for companies like Energy Transfer LP [1]

Group 1 - Energy Transfer LP plans to release earnings for Q4 and full year 2025 on February 17, 2026, before market opens [1] - A conference call will be held on February 17, 2026, at 8:00 am Central Time to discuss quarterly results and provide company updates [2] - The conference call will be available via live internet webcast and for replay on the company's website [2] Group 2 - Energy Transfer LP operates one of the largest and most diversified portfolios of energy assets in the U.S., with approximately 140,000 miles of pipeline [3] - The company's strategic network spans 44 states and includes assets in all major U.S. production basins [3] - Core operations include natural gas midstream, transportation and storage assets, crude oil, NGL, and refined product transportation [3] - Energy Transfer owns significant interests in Sunoco LP and USA Compression Partners, LP, holding 28.5 million common units (about 15% of total) and 46.5 million common units (about 38% of total), respectively [3]

Core Insights - Enbridge Inc. (ENB) is a leading midstream energy company that generates stable fee-based revenues, making it less vulnerable to oil and natural gas price volatility [1] Group 1: Financial Performance and Dividend - ENB is positioned to generate incremental cash flows for shareholders, supported by over C$30 billion in secured capital projects across various sectors including liquid pipelines, gas transmissions, renewables, and gas distribution & storage [2] - The current dividend yield of ENB is 5.9%, which exceeds the industry average of 5.36%, and its three-year median dividend yield is 6.66%, higher than the industry's 6.06% [3][6] - ENB has a history of rewarding shareholders with dividend hikes for 31 consecutive years, with additional cash flows expected as new projects come online [2][6] Group 2: Comparison with Competitors - Kinder Morgan Inc. (KMI) and Williams (WMB) have lower dividend yields of 4.35% and 3.36%, respectively, compared to ENB's yield [4] Group 3: Stock Performance and Valuation - ENB shares have increased by 10.4% over the past year, outperforming the industry composite stocks, which improved by 7.8% [5] - ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.76X, above the broader industry average of 13.63X [8]

Core Viewpoint - Hess Midstream LP (NYSE:HESM) has been downgraded by Raymond James to Market Perform from Outperform, reflecting a shift in investor expectations towards execution and cash flow reliability in the midstream sector [2] Financial Performance - In Q3 2025, Hess Midstream reported a net income of $176 million, slightly down from $180 million in Q2 2025, while adjusted EBITDA increased to $321 million from $316 million in the previous quarter [3] - The company's gross adjusted EBITDA margin remained strong at approximately 80%, exceeding its target of 75%, indicating effective cost management and operational leverage [4] Distribution and Shareholder Returns - Hess Midstream continued to meet its distribution framework, achieving a targeted 5% annual growth per Class A share in Q3, alongside an additional boost from a $100 million share repurchase program [5] - The company provides midstream services including gathering, processing, storage, and transportation for crude oil, natural gas, and natural gas liquids [5]

Core Viewpoint - Kinetik Holdings Inc. (NYSE: KNTK) has been upgraded to Outperform by Raymond James, with a price target set at $46, reflecting positive momentum in the midstream sector as it heads into 2026 [2]. Financial Performance - Kinetik reported total operating revenue of $463.9 million for the third quarter, marking a 17% increase from the previous year [3]. - Product revenue rose to $357.6 million, up from $290.4 million in the same quarter last year [3]. - The company generated distributable cash flow of $158 million and free cash flow of $50.9 million for the quarter, indicating strong cash generation capabilities [5]. Operational Milestones - The Kings Landing project has officially entered full commercial service, contributing additional processing capacity in New Mexico [4]. - The project has been consistently operating above 100 million cubic feet per day, aligning with the company's internal expectations [4]. Industry Context - The midstream sector is entering 2026 with increased expectations following a constructive performance in 2025, shifting focus to companies' ability to convert favorable conditions into measurable cash flow [2].

Core Viewpoint - Oneok experienced a significant decline in stock value in 2025, losing 26.8%, despite a strong increase in net income and a robust fee-based earnings model [1][2]. Group 1: Company Overview - Oneok is one of the largest midstream energy companies in the U.S., operating a pipeline network of nearly 60,000 miles, focusing on connecting energy producers with end users [2]. - Approximately 90% of Oneok's earnings are fee-based, which are on the rise, with net income increasing by 14% to $2.4 billion in the nine months ending September 30, 2025 [2]. Group 2: Stock Performance and Challenges - The stock underperformed in 2025 due to a series of large acquisitions that, while expanding the company's footprint, also increased costs and debt, leading to investor concerns [3][5]. - Oneok's long-term debt rose to $32 billion by September 30, 2025, up from $12.7 billion in June 2023, contributing to the stock's pressure throughout the year [6]. Group 3: Future Outlook - Three key catalysts are expected to enhance Oneok's cash flows in 2026: 1. Cost synergies from recent acquisitions, particularly projected at $500 million from Magellan by the end of 2025 [7]. 2. Anticipated reduction in cash tax expenses by nearly $1.5 billion over the next five years due to tax deductions [9]. 3. A decline in capital expenditures post-acquisitions, allowing for increased free cash flow for debt repayment, dividends, and share buybacks, with plans to raise annual dividend payouts by 3% to 4% [9].

Core Insights - Recent announcements from midstream companies indicate a strong commitment to shareholder returns, with distribution growth serving as a key indicator of sector health and stability in income generation despite market volatility [1]. Distribution Increases - Plains All American (PAA/PAGP) announced a quarterly distribution increase to $0.4175 per unit, reflecting a 9.9% rise from the previous level [2]. - Enterprise Products Partners (EPD) declared a quarterly distribution of $0.55 per unit, a 0.9% increase from $0.545, continuing its long-standing trend of payout growth [3]. Sector Outlook - Sunoco (SUN) has set a 2026 guidance targeting at least 5% distribution growth, with plans for quarterly increases, while Energy Transfer (ET) aims for an annual growth rate of 3% to 5% [5]. - The midstream sector's ability to generate excess free cash flow and preference for returning value to unitholders is underscored by these updates [4]. ETF Exposure - Distribution hikes from midstream companies positively impact key ETFs such as the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR), which provide investors with exposure to the sector [6]. - As of January 8, the Alerian MLP Infrastructure Index (AMZI) and Alerian Midstream Energy Select Index (AMEI) yielded 7.7% and 5.6%, respectively, highlighting the attractiveness of midstream investments for income generation in 2026 [7].

Core Viewpoint - Enterprise Products Partners offers a substantial yield of 6.8%, significantly higher than the S&P 500 average of 1.1%, but its potential to create millionaire-making investments is complex [1]. Company Overview - Enterprise Products Partners operates in the midstream segment of the energy sector, focusing on the transportation of oil, natural gas, and related products globally [2]. - The company charges fees for the use of its energy infrastructure, making the volume of commodities transported more critical than their price [2]. Financial Performance - Despite fluctuations in commodity prices, demand for energy remains stable, allowing Enterprise to generate reliable cash flows that support its large distribution [3]. - Over the past 12 months, the company's distributable cash flow covered its distribution by 1.7 times, indicating a strong buffer against potential challenges [3]. - Enterprise maintains an investment-grade-rated balance sheet, providing additional security to navigate short-term challenges without cutting distributions [4]. Distribution History - The company has successfully expanded its distribution for 27 consecutive years, even during significant downturns in the energy sector, such as the Great Recession and the COVID-19 pandemic [4]. Investment Returns - Since its IPO in 1998, Enterprise has delivered a total return of 3,470%, compared to approximately 890% for the S&P 500 [6]. - The unit price of Enterprise has increased by 490% since its IPO, which is comparable to the S&P 500's price-only gain of 510% [7]. - The reinvestment of distributions plays a crucial role in total returns, with most of the return coming from reinvested distributions rather than price appreciation [9]. Investment Strategy - For income-focused investors, Enterprise can provide substantial and reliable distributions, potentially leading to significant portfolio growth over time [11]. - However, if distributions are spent rather than reinvested, achieving millionaire status may take longer [11]. - The stock is likely to offer slow and steady capital appreciation, making it less appealing to investors focused solely on growth [10].