Stacey Morris, Director of Research at the index provider for the Alerian Midstream Energy Dividend ETF says solid 2Q results for midstream energy companies and improving energy macro environment lends optimism to the space.
Morris says record high European and Asian LNG prices driven by increased LNG demand in South America and less European renewable generation highlights how fossil fuels are still an important part of the global energy mix. She adds about two thirds of the companies within in the underlying index for the ETF, which has yielded around 7.2% as of the end of September, is primarily focused on activities involving natural gas.