6.107.147+$21.93+8.11%$292.50[Seagate Technology][STX]• Vol: 1.892.182+$24.55+6.20%$420.57IDoorDashIJDASHI• Vol: 2.430.673+$9.94+6.05%$174.32## Top Losing Stocks[GoDaddy][GDDY]• Vol: 4.828.730-$16.0317.37%$76.27[First Solar][FSLR]• Vol: 6,097,667-$31.6113.00%$211.60|CoStar Group||CSGP|• Vol: 5,901,971-$4.9310.03%$44.22[Lennar] [LEN]• Vol: 1,029.027-$6.635.70%$109.77[Builders FirstSource][BLDR]â€๔ Vol: 787,778-$6.185.63%$103.50 Retirees Are Watching AMLP as Natural Gas Prices Briefly Hit Highest Price in Yea ...

Core Insights - The article discusses the growing recognition and stability of master limited partnerships (MLPs), particularly highlighting the Alerian MLP ETF (AMLP) as a strong investment choice in a volatile market [2][3]. Group 1: MLPs and Market Position - MLPs have evolved from being relatively unknown to gaining significant investor recognition, with AMLP being a notable example [2]. - The underlying businesses of MLPs operate like essential infrastructure, focusing on pipelines and storage facilities, which are critical to the U.S. economy [3]. Group 2: Business Model and Stability - AMLP's stability is attributed to its fee-based business model, which charges a flat fee for the transportation of oil and gas, making it less sensitive to fluctuations in energy prices [4]. - The ETF has maintained a streak of 61 consecutive quarters of payouts, providing steady income that acts as a buffer during market volatility [5]. Group 3: Industry Dynamics - A significant driver for MLPs in 2026 is the surge in data-center construction, with long-term contracts being signed to transport natural gas for these facilities [5]. - AMLP consists of a concentrated portfolio with only 15 holdings, where the top seven companies represent a majority of the assets under management [6]. Group 4: Risk and Volatility - MLPs, particularly AMLP, offer a unique hedge against market volatility, with a beta of 0.7x, indicating it is historically 30% less volatile than the S&P 500 Index [8].

Core Insights - The article emphasizes the volatility in natural gas prices and suggests that midstream investments can provide a more stable exposure to the natural gas market [1] - It highlights the expected growth in natural gas demand driven by rising exports and power demand, making midstream companies an attractive investment option [1] Natural Gas Price Volatility - Natural gas prices have experienced significant fluctuations, with Henry Hub prices exceeding $5 per million British thermal unit (MMBtu) in early December, dropping to $3, and then spiking above $7 during a January cold snap [1] - The volatility is attributed to weather conditions, which can lead to production limitations due to well freeze-offs during peak demand [1] Midstream as a Defensive Investment - Midstream companies operate on a fee-based business model, providing essential services like transportation and storage under long-term contracts, which can last up to 20 years [1] - This model offers visibility into future cash flows, insulating midstream companies from daily price fluctuations in natural gas [1] - The cash flow generated supports generous dividends, making midstream investments appealing during volatile commodity price environments [1] Midstream ETFs for Investment - Investors can gain exposure to midstream companies through energy infrastructure ETFs such as the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), which includes energy infrastructure MLPs generating cash flow primarily from midstream activities [1] - ENFR tracks the Alerian Midstream Energy Select Index (AMEI), comprising North American midstream energy infrastructure companies involved in pipeline transportation, storage, and processing [1]

Core Insights - The energy sector has emerged as the best-performing sector in the S&P 500 for 2026, with the Energy Select Sector Index (IXE) gaining 19.8% year-to-date compared to the overall index's 1.5% return [1] - A significant increase in oil prices, driven by geopolitical tensions and supply concerns, has contributed to this performance, with WTI crude prices rising from $57 per barrel at the end of 2025 to above $65 per barrel [1] - Midstream ETFs, such as the Alerian MLP ETF (AMLP) and Alerian Energy Infrastructure ETF (ENFR), are outperforming the S&P 500, with year-to-date gains of 10.8% and 11.7% respectively [1] Energy Sector Performance - The energy sector's strong performance is attributed to a surprising and sustained strength in oil prices, which defied earlier bearish sentiments [1] - Analysts had previously forecasted Q1 oil prices at $57 per barrel, but current spot prices are consistently in the $60s, indicating a more robust commodity price environment than expected [1] - Rising tensions with Iran and concerns regarding the Strait of Hormuz have further supported the increase in oil prices [1] Midstream Sector Insights - Midstream companies benefit from fee-based business models that provide stable cash flows, resulting in less exposure to volatile oil and gas prices [1] - The Alerian MLP Infrastructure Index (AMZI) and Alerian Midstream Energy Select Index (AMEI) yield 7.4% and 5.1% respectively, highlighting the attractive income potential of midstream investments [1] - The midstream sector is positioned to offer compelling income opportunities alongside reduced volatility in energy exposure [1]

Three of the smallest sectors in the S&P 500 delivered the index's strongest performance in January, while the two largest sectors weighed on returns. The broad market index gained modest ground last month, with the State Street SPDR S&P 500 ETF Trust (SPY) up 0.6%, according to ETF Database. Beneath that muted headline number, though, sector performance told a much different story. The $32.7 billion State Street Energy Select Sector SPDR ETF (XLE) jumped 14.4% in January, leading all sectors despite energy ...

Core Insights - The midstream sector is demonstrating strong financial health at the start of 2026, with numerous companies announcing increases in distributions and dividends, reinforcing its position as a reliable income source for investors [1] Payout Growth Across Midstream - Williams (WMB) raised its quarterly cash dividend to $0.525 from $0.50, a 5% increase [1] - Plains All American (PAA/PAGP) increased its quarterly distribution to $0.4175 per unit, reflecting a 9.9% rise [1] - Enterprise Products Partners (EPD) raised its distribution to $0.55, nearly a 1% increase [1] - ONEOK (OKE) announced a 4% sequential increase to $1.07 per share [1] Broad Sector Momentum - Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% year-over-year rise from $0.325 [1] - Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% year-over-year increase [1] - Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% year-over-year increase [1] - Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase [1] - Kinetik (KNTK) raised its payout to $0.81, reflecting a 4% sequential increase [1] - Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% year-over-year rise [1] ETF Exposure - Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are included in both the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), while ENFR tracks the Alerian Midstream Energy Select Index (AMEI) [1] - Williams, ONEOK, and Kinetik operate as C-corps, with only ENFR holding them [1]

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 - The article discusses the midstream energy sector, specifically focusing on the Alerian MLP ETF (AMLP) and its comparison to the MLPX ETF, indicating that not much has changed since the last coverage in February of the previous year [1] Group 1: Investment Strategy - The author emphasizes a macro-oriented and data-driven investment approach, highlighting the importance of connecting overlooked dots in the market [1] - The investment philosophy includes holding concentrated, asymmetrical, and high-conviction positions while managing risk through disciplined position sizing [1] - The article references a quote from Howard Marks about the necessity of holding idiosyncratic positions for successful investing [1] Group 2: Market Insights - The author is on a quest to identify narrative trends before they become mainstream, a process referred to as the hunt for information alpha [1] - Historical context is provided through a quote from Timothy Snyder, suggesting that history serves as a guide rather than a repetitive cycle [1]

Core Insights - The Alerian MLP ETF (AMLP) is perceived as a primary choice for investors in the midstream sector, but it has potential drawbacks related to tax efficiency and high concentration in MLP assets [1] Group 1: Investment Strategy - The analysis emphasizes the importance of a balanced portfolio of U.S. securities, leveraging macro-economic analysis and real-world trading experience [1] - The goal is to identify profitable and undervalued investment opportunities primarily within the U.S. market [1] Group 2: Analyst Background - The analyst has a decade of experience in the investment field, combining roles as an Investment Consultant and Active Intraday Trader [1] - The analyst's expertise is supported by two university degrees in Finance and Economics, along with practical experience in management and trading [1]

Core Insights - The article discusses the options available for investors seeking exposure to Master Limited Partnerships (MLPs) through exchange-traded products (ETPs), specifically focusing on the differences between exchange-traded funds (ETFs) and exchange-traded notes (ETNs) [1][3]. Group 1: Product Overview - The Alerian MLP ETF (AMLP) is an established ETF, while the J.P. Morgan Alerian MLP Index ETN (AMJ) was a prominent ETN until its maturation in 2024, after which it was succeeded by the JPMorgan Alerian MLP Index ETN (AMJB) [2]. - Both ETFs and ETNs trade on exchanges and track underlying indices, issuing a 1099 form to simplify tax reporting for investors [3]. Group 2: Structural Differences - ETNs, introduced in 2006, are senior, unsecured debt securities issued by banks, unlike ETFs that own the underlying assets. The return on ETNs is linked to the performance of a market index [4][5]. - The ETN structure minimizes tracking error as the issuer is contractually obligated to pay the index's exact return, and ETNs pay variable coupons instead of traditional dividends [6]. Group 3: Investment Considerations - A unique risk associated with ETNs is the creditworthiness of the issuer, as investors do not own the underlying securities, making returns dependent on the bank's ability to meet its debt obligations [7]. - MLPs are appealing due to tax-deferred distributions and high yields, with ETFs like AMLP being commonly used in income portfolios or as alternative investments [8].