ETRACS Alerian MLP Infrastructure Index ETN Series B due Apr 2 2040

MLPB

Market cap $195M

A wave of sanctioned projects is set to expand U.S. LNG export capacity by 75% by 2030, driven by new final investment decisions (FIDs) from major players like Cheniere and Venture Global. Beyond current construction, a robust pipeline of U.S. LNG projects shows strong commercial momentum, indicating more FIDs are on the horizon this year.

Summary Investors typically allocate to MLPs/midstream in an income portfolio, given generous yields and potential diversification benefits. Energy infrastructure can also fit in a real asset sleeve and has typically outperformed in periods of elevated inflation.

Amid tariff headlines and extreme market volatility, midstream MLPs and corporations have been announcing their quarterly dividends. Companies are executing well in prioritizing returns to shareholders, primarily through dividends but also with buybacks.

Summary Oil prices have been plagued by demand concerns related to tariffs and recession risk, while OPEC+ surprised markets with higher production plans for May. Amid the weakness in oil, midstream/MLPs were more resilient than other energy subsectors given fee-based business models with stable cash flows and less commodity price exposure.

Summary Midstream MLPs and C-Corps have been growing their payouts in recent years, supported by free cash flow generation and EBITDA growth. Several midstream companies have either provided guidance for 2025 dividends, announced increases, or given long-term forecasts for dividend growth.

NEW YORK--(BUSINESS WIRE)--UBS Investment Bank today announced coupon payments for 9 ETRACS Exchange Traded Notes traded on the NYSE Arca and expected coupon payments for 3 ETRACS Exchange Traded Notes traded on NASDAQ (together, the “ETNs”). NYSE Ticker ETN Name and Prospectus Supplementa Coupon Valuation Date Ex-Date Record Date Payment Date Coupon Amount Payment Schedule Current Yield (annualized) MLPBb ETRACS Alerian MLP Infrastructure Index ETN Series B 12/30/2024 1/13/2025 1/13/2025 1/22/.

Summary Midstream companies are expected to continue generating free cash flow and prioritizing returns to shareholders. A muted oil outlook can favor midstream given its defensive qualities, namely fee-based businesses and generous yields.

The AI boom, low rates and the lure for dividends make master-limited-partnerships or MLP ETFs hot investments currently.

Summary Five constituents in the broad Alerian Midstream Energy Index (AMNA) spent a combined $1.02 billion on equity repurchases in 2Q24. Over 85% of AMNA by weighting currently have a buyback authorization in place.

Summary MLPs/midstream are not particularly rate sensitive but could see some benefits as interest rates move lower. With fixed income yields moderating, investors may decide to look to MLPs/midstream for income when making new allocations.