MLPs Drive 1Q26 Midstream Dividend Gains; Indexes Up ~25% YTD

Master limited partnerships accounted for most sequential dividend increases announced for first-quarter 2026, with 96.0% of the Alerian Midstream Energy Index (AMNA) by weighting reporting higher payouts versus 1Q25. The broad midstream indexes also delivered strong market returns through May 15, with AMNA up 27.6%, AMZ up 25.1% and AMZI up 25.0% on a total-return basis. Targa Resources increased its quarterly dividend by 25% to $1.25 per share, consistent with guidance set in November 2025. DT Midstream raised its distribution 7.3%, and Sunoco increased its quarterly payment 6.25%—a 5% one-time step-up plus a 1.25% ongoing increase. Pembina and Kinder Morgan posted year-over-year first-quarter increases of 3.5% and 1.7%, respectively. Other MLPs reporting sequential growth included Energy Transfer, Hess Midstream, Global Partners and Delek Logistics Partners. Western Midstream raised its payout 2.2% and Star Group was higher by 6.8% within the Alerian MLP Index. By weighting, more than 80% of AMZ constituents and nearly 90% of AMZI constituents increased distributions over the past year. No AMNA constituent has cut its regular dividend since July 2021. Company statements and filings pointed to stronger EBITDA and free cash flow as the basis for many of the increases. Several management teams provided forward distribution targets: MPLX expects 12.5% annual distribution growth in 2026 and 2027; Cheniere plans roughly 10% annual dividend growth through the end of the decade; Hess Midstream and Sunoco are targeting at least 5% multi-year distribution growth, with Hess Midstream’s outlook extending through 2028. Market factors cited by companies included higher oil prices, supply disruptions in the Middle East and rising natural gas demand in North America, which supported stronger first-quarter earnings and upward revisions to guidance at some firms. Because many firms time increases to fourth- or first-quarter results, the pace of announced hikes may slow in second-quarter disclosures. Several companies also used share repurchases alongside dividends; buybacks are expected to be discussed in upcoming quarterly reports. As of May 15, the MLP indexes offered higher yields than the broad midstream index: AMZ around 6.4%, AMZI about 6.8% and AMNA about 4.2%.