Today’s article updates one of our most popular charts, which shows the makeup of the North American midstream universe by market cap with total company count. While the universe has changed significantly since 2013, company count has seemingly stabilized in recent years. Interestingly, the total midstream market cap reached a new high watermark at the end of 2025, eclipsing 2014, when there were more than twice as many companies. Today’s note discusses the key changes in the midstream universe and the implications for investors.
Key Takeaways
- At the end of 2025, U.S. C-Corps were the largest portion of the North American midstream market cap at 42%. U.S. C-Corps were followed by MLPs at 32% and Canadian C-Corps at 26%.
- The year-end 2025 total midstream market cap was just over $760 billion. This surpasses the past high from 2014, when there were twice as many companies in the universe.
- For investors, the choice is often maximizing yield by focusing on MLPs or prioritizing broad diversification with a total-return orientation. Investors may choose to own both types of strategies.
The Midstream Universe Tilts Towards U.S. C-Corps
The North American midstream universe encompasses MLPs and U.S. and Canadian corporations. Each is grouped by market cap in USD alongside total company count in the chart below. It is a helpful summary of how the midstream landscape has evolved over time, from being dominated by MLPs in 2013–2016 to now being biased toward U.S. corporations. Canadian C-Corps make up a greater percentage of the universe by market cap today than in the early years depicted, but they were a much larger piece of the universe in 2020 when they were more defensive than their U.S. peers.
At the end of 2025, U.S. C-Corps were the largest portion of the North American midstream market cap at 42%, followed by MLPs at 32%. Canadian C-Corps accounted for 26% of the universe by market cap. The total market cap was just above $760 billion.
Keep in mind that this chart has historically excluded Compression and Marketing and Distribution companies, which are also not in the Alerian Midstream Energy Index (AMNA). The chart includes a few small midstream names that are not AMNA constituents.
Notably, company count actually increased from 2024 to 2025 after nine straight years of declines. While EnLink and Aris Water Solutions were acquired during 2025, new companies came to market. Notably, Venture Global (VG) went public in January 2025. WaterBridge Infrastructure (WBI) IPO-ed in the U.S. in September, while Rockpoint Gas Storage (RGSI:TSE) debuted in Toronto in October. The new MLPs that have come to market in recent years have been upstream-focused and are not included in the chart above. Namely, those are TXO Partners (TXO) and Mach Natural Resources (MNR), which went public in 2023.
What Are the Implications for Investors?
For midstream investors, the takeaway from this chart has not really changed that much in recent years, given a similar landscape and static product structures. As a reminder, any ETF, CEF, or mutual fund with more than 25% MLPs will be taxed as a corporation. Funds structured as Regulated Investment Companies (RICs) must limit their MLP exposure to 25% to maintain their pass-through status. MLPs typically offer higher yields than their C-Corp counterparts.
Prior to 2017, investors could get broad exposure to the midstream space and maximize their yield using MLP-focused products. Since then, investors have had to choose between focusing on MLPs to maximize yield or accessing midstream through an RIC to get broader diversification with more of a total-return orientation. The Alerian MLP Infrastructure Index (AMZI) is currently yielding 6.5%, while the broader Alerian Midstream Energy Select Index (AMEI), which caps MLPs at 25%, is yielding 4.5%. The ten-year average yield difference between these indexes has been 200 basis points.
Often, investors come to the midstream space for yield and will prefer an MLP exposure. That said, we also see investors deciding to own both an MLP-focused product and an RIC product to meet their income needs and get broader diversification to the space. With only up to 25% MLP exposure in RICs, the overlap with an MLP-focused approach is limited. Additionally, given the broad tailwinds for North American natural gas demand, some investors are preferring RICs to better play that theme. For context, companies primarily focused on natural gas infrastructure represent 70.7% of AMEI. Long-haul natural gas pipelines are more commonly owned by C-Corps like Kinder Morgan (KMI) and Williams (WMB).
Finally, a greater number of corporations in the U.S. and Canada has made it possible to create indexes focused solely on C-Corps. The Alerian Midstream Energy Corporation Index (AMCC) launched in 2019, and a similar dividend-weighted version, the Alerian Midstream Energy Corporation Dividend Index (AMCCD), underlies an UCITS ETF in Europe.
Bottom Line
The makeup of the North American midstream universe has been more stable in recent years, with muted changes in company count. That said, investors should understand how the universe impacts the available products in this space and what type of products can best meet their needs.
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AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the Alerian Energy Infrastructure Portfolio (ALEFX). AMCCD is the underlying index for the Alerian Midstream Energy Dividend UCITS ETF (MMLP.LN).
Related Research:
How Consolidation Has Changed the Midstream Landscape
Why Investors Should Care About Midstream Classifications
Midstream: Robust Gas Backlogs Drive Growth Visibility
Why Most ‘MLP ETFs’ Own Less Than 25% MLPs
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, MLPB, ENFR, ALEFX, and MMLP.LN, for which it receives an index licensing fee. However, AMLP, MLPB, ENFR, ALEFX, and MMLP.LN are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP, MLPB, ENFR, ALEFX, and MMLP.LN.
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