The midstream sector enjoyed a strong first quarter, with almost all of the companies tracked by Alerian either maintaining or raising their payouts to investors.

A May 11 report authored by Senior Research Analyst Mauricio Samaniego noted that the combination of strong results and an improving macro outlook provided comfort to investors concerning the reliability of midstream income.

“Midstream yields have fallen below their five-year averages as a solid earnings season, steady dividends and an improving outlook have all supported the outperformance of the space relative to broader energy in recent months,” Samaniego wrote. “Since the end of February through April 30, AMNA (Alerian Midstream Energy Index) and AMZI (Alerian MLP Infrastructure Index) are up 14.5% and 15.0% on a total-return basis, respectively, compared to a 3.5% total return for the (S&P Dow Jones) Energy Select Sector Index (IXE) over the same period.”

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