Strong Midstream 2Q26 Earnings Boost Full-Year Outlook

• Over a dozen major midstream operators raised full-year EBITDA guidance or pointed to the top end of their target ranges following strong second-quarter earnings beats.
• Permian natural gas takeaway constraints eased earlier than expected, lifting producer volume outlooks and driving higher throughput across major pipeline systems.
• Global supply tightness and geopolitical tensions continued to fuel acute international demand for U.S. liquefied natural gas (LNG) and natural gas liquids (NGL) exports, boosting marine terminal and pipeline volumes.

Following a constructive first half, midstream MLPs and corporations reported their second-quarter results in late July and early August. Most companies beat earnings estimates and a significant number raised their full-year 2026 adjusted EBITDA guidance, as can be seen below. Midstream companies also broadly reaffirmed commitments to dividend growth and opportunistic equity repurchases.

While the guidance increases of Sunoco (SUN), Williams (WMB), and WaterBridge Infrastructure (WBI) primarily reflect recent M&A activity, most of the names above increased their guidance ranges as a result of improved fundamentals and a constructive production outlook.

Additionally, several companies not featured in the chart signaled strong full-year outlooks despite not formally raising a guidance range. For example, Kinder Morgan (KMI) announced it now expects to finish the year more than 5% favorable to its adjusted EBITDA budget established late last year, up from the 3% outperformance expected in 1Q26. Similarly, Enterprise Products Partners (EPD) management noted its prior expectation for “modest” 2026 EBITDA growth is now a low bar, while TC Energy (TRP CN) and Targa Resources (TRGP) both indicated their full-year results will likely land at the top end of their target ranges.

Midstream MLPs and corporations broadly cited a supportive macroeconomic backdrop, particularly in the prolific Permian Basin. Plains All American (PAA) raised its Permian production growth outlook to 100 – 200 thousand barrels per day (MBpd), up from prior expectations of relatively flat output, driven by natural gas egress coming online earlier than expected. Energy Transfer’s (ET) 1.5 billion cubic feet per day (Bcf/d) Hugh Brinson natural gas pipeline entered commercial service earlier than expected, while MPLX (MPLX) reported that the joint venture 2.5 Bcf/d Blackcomb pipeline began commissioning in July and expects the pipeline in service in 4Q26.

Likewise, Kinetik (KNTK), a pure-play Permian operator, cited “accelerated producer development into late 2026 and early 2027.” MLP Western Midstream (WES) also highlighted expectations for stronger producer activity in 2H26 in the Delaware basin, lifting its FY26 volume outlook for natural gas.

The continued closure of the Strait of Hormuz in the Middle East has broadly boosted demand for U.S. liquefied natural gas (LNG) and natural gas liquids (NGL). MLP bellwether EPD reported record marine and pipeline volumes driven by acute global demand for U.S. energy in April and May. C-Corp TRGP noted that its strong earnings beat was driven by outperformance across the NGL value chain, including robust export volumes for liquefied petroleum gas (LPG), a subset of NGLs.

Full-year guidance raises for LNG exporters Cheniere Energy (LNG) and Venture Global (VG) were supported by a constructive macro outlook. Cheniere cited persistent Middle East supply disruptions tightening the market and European storage deficits. NextDecade (NEXT), which is currently building out its Rio Grande LNG facility, expects spot prices to remain elevated through at least 2031 due to the ongoing Middle East conflict temporarily removing ~20% of global supply. This year, VG and Cheniere have announced bolt-on expansions for massive existing export terminals. Meanwhile, a few LNG projects are advancing in Canada.

Also north of the border, Canadian operator Gibson Energy (GEI:TSE) highlighted a constructive macro backdrop, with the recent TMX pipeline expansion driving infrastructure and tankage demand. South Bow (SOBO:TSE) anticipates crude oil supply in the Western Canada Sedimentary Basin to grow modestly through 2026, with management projecting the basin to be short on egress capacity by mid-2027.

While increased volumes and export demand acted as strong tailwinds during the quarter, energy infrastructure companies’ defensiveness ultimately stems from the support of their fee-based business models, which provide vital insulation from commodity price swings as seen in the second quarter.

Midstream exits the second-quarter earnings season in a position of strength, validated by widespread EBITDA beats and full-year guidance lifts across the sector. Even amidst commodity price volatility, fee-based business models provided strong cash flow insulation, while expanding Permian egress and robust global demand for U.S. LNG and NGL exports provided volume tailwinds. Crucially, capital allocation remains disciplined, with strong balance sheets continuing to support steady dividend growth and opportunistic share repurchases.

For the latest insights on how energy infrastructure can provide reliable yield and defensiveness amid market uncertainty, don’t miss our next virtual event, “Navigating Macro Volatility with Energy Infrastructure,” on Tuesday, August 25, 2026, at 12:30 pm ET. Follow the link here to register.

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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).

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