Within the last month, many energy infrastructure master limited partnerships have posted 1Q24 results. While there were a few outliers, many MLPs are continuing to defy analyst expectations, while some have even raised guidance for FY24 following acquisitions.
One of the big winners within MLPs for the first quarter was Energy Transfer (ET). In its first-quarter results, ET saw adjusted EBITDA of $3.88 billion. The company’s adjusted EBITDA was about 5% above Eikon consensus estimates.
Energy Transfer’s 1Q24 results did not simply beat analyst expectations, however. The company also updated the FY24 adjusted EBITDA guidance to $15.15 billion at the midpoint. This guidance is up from previous projections for $14.65 billion at the midpoint announced and reflect Sunoco LP’s (SUN) acquisition of NuStar Energy. ET owns 21% of the common units of SUN.
For its part, Sunoco LP’s 1Q24 results included adjusted EBITDA of $242 million. Sunoco’s results came in about 5% higher than Eikon consensus estimates. Sunoco also increased the midpoint of its FY24 adjusted EBITDA guidance to $1.49 billion, which accounts for its acquisition of NuStar Energy.
See more: MLP M&A Monday: SUN Adding NuStar to Its Galaxy
Western Midstream also released sound quarterly results, generating first-quarter adjusted EBITDA of $608.4 million. These results were 6.8% higher than the Eikon consensus estimates. Western Midstream also projected to close out 2024 at the upper end of its current guidance range.
Other notable earnings beats include MPLX (MPLX), Enterprise Partners (EPD), and Plains All American (PAA).
Index Benefits
These strong earnings numbers are not just beneficial for the companies themselves. Western Midstream, Sunoco LP, and Energy Transfer LP are some of the largest holdings within the Alerian MLP Infrastructure Index (AMZI).
Many of AMZI’s other holdings reported strong results as well. Within the top 10 constituents of AMZI, nine posted 1Q results above Eikon consensus estimates.
The Alerian MLP ETF (AMLP) can help investors harness MLP and midstream momentum. The fund tracks AMZI and provides exposure to MLPs that primarily earn cash through midstream operations.
Fund flows indicate that investors are continuing to rally behind AMLP. Since April 15, 2024, the fund has seen over $234 million in net flows. As of May 16, 2024, the fund has had a trailing 12-month yield of 7.64%.
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