U.S. Midstream MLPs: Macro Forces Behind Cash Flows And Investor Appeal
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Infrastructure Capital Advisors490 FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryThe MLP outlook today is shaped by three macro forces: interest rates, commodity cycles, and the industry’s shift toward far more disciplined capital spending.Interest rates continue to influence how the market values MLPs. When rates fall, the income spread between midstream payouts and bond yields widens, increasing their relative appeal.Most midstream revenue is generated through fee-based contracts, yet commodity prices still shape volumes. bjdlzx/iStock via Getty Images U.S. midstream master limited partnerships operate the pipelines, storage, and processing assets that keep the country’s energy system running. Their high cash distributions have long appealed to income-focused investors. Their outlook today is shaped by three macro forces: interest rates, commodity cycles, andThis article was written byInfrastructure Capital Advisors490 FollowersFollowInfrastructure Capital Advisors ("Infrastructure Capital") is a leading provider of investment management solutions designed to meet the needs of income-focused investors. Jay Hatfield is CEO and CIO of the investment team. Mr. Hatfield is the lead portfolio manager of the InfraCap Small Cap Income ETF (NYSE: SCAP), InfraCap Equity Income Fund ETF (NYSE: ICAP), InfraCap MLP ETF (NYSE: AMZA), Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA), InfraCap REIT Preferred ETF (NYSE: PFFR), and a series of private accounts. Infrastructure Capital frequently appears on or is quoted in Fox Business, CNBC, Barron's, The Wall Street Journal, Yahoo Finance, TD Ameritrade Network, and Bloomberg Radio/TV.
The team at Infrastructure Capital publishes a monthly market and economic report, quarterly commentaries, investing primers, and asset class and strategy research. In addition, Infrastructure Capital hosts a monthly webinar and attends industry conferences in an effort to provide educational investing resources.