Midstream Earnings Underscore Strong Outlook for Natural Gas
First-quarter earnings have underscored that natural gas remains a compelling opportunity for the midstream segment. As earnings are well underway, many midstream names have provided updates on natural gas growth opportunities, including those driven by AI and data centers. Williams Companies (WMB), Energy Transfer (ET), and TC Energy (TRP) are the latest midstream companies to share details on growth related to natural gas. Details on Williams' Growth Related to Natural GasWilliams announced Transco’s Power Express pipeline, a 0.95 billion cubic feet per day (Bcf/d) expansion, during the firm’s earnings call on May 6. The project will provide energy to the Virginia area and is backed by a significant commitment from an anchor shipper. The project will use existing infrastructure to reduce permitting risk and provide scalability, according to Williams. Power Express is expected online in 2030.
Additionally, Williams is developing two other projects similar to the Socrates power generation project in Ohio. These projects will help meet growing power demand for data centers. Energy TransferNext, Energy Transfer is pursuing opportunities to meet growing power demand across its pipeline network. During its earnings call on May 6, the firm said it has roughly 200 data center opportunities in 14 states across its footprint.
The company announced earlier this year it had entered into a long-term agreement with CloudBurst to provide up to 450,000 MMBtu/d of natural gas to a data center development in Central Texas.
Energy Transfer said it recently completed several agreements with electric utilities in the Midwest to provide connections for new natural gas-fired generation set to replace coal-fired generation.
Additionally, Energy Transfer announced it has begun construction of the Hugh Brinson Pipeline Project. This will provide additional transportation capacity out of the Permian Basin to serve growing natural gas demand
Phase 1 of the Hugh Brinson Pipeline Project has a capacity of 1.5 Bcf/d and is sold out and backed by long-term, fee-based commitments with strong investment grade counterparties. Phase 2 would increase the capacity to 2.2 Bcf/d.
The Hugh Brinson Pipeline Project enhances Energy Transfer’s ability to support power plant and data center growth.TC EnergyFinally, TC Energy announced the Northwoods Project during the firm’s first-quarter 2025 earnings call on May 1. It’s a new project on the ANR system that’s expected to be in service in 2029.
The project will serve power generation to support demand from data centers and overall economic development in the U.S. Midwest. It’s backed by a 20-year, take-or-pay contract with an investment-grade counterparty, according to the firm.ETFs Offering Exposure to the Strong Outlook for Natural GasWilliams, Energy Transfer, and TC Energy are holdings in the Alerian Energy Infrastructure ETF (ENFR ). The ETF offers exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American midstream energy infrastructure companies.
ENFR includes corporations and MLPs engaged in the pipeline transportation, storage, as well as processing of energy commodities. Companies primarily focused on natural gas pipeline transportation represent 37.2% of the fund by weight as of May 6.
For more on midstream, please join us Tuesday, May 20, at 12:30 p.m. ET for our 30-minute webcast, “The State of Midstream/MLPs in Volatile Markets.” Register here.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
VettaFi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ENFR, for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ENFR.
Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.
ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.
For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.
FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.
News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.
Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.
Line of Credit