Enterprise Products Partners (EPD), a top holding in SS&C ALPS Advisors’ energy infrastructure ETFs, continues to demonstrate a commitment to shareholder returns. Recent announcements regarding EPD’s distribution growth and buyback program underscore the MLP’s solid positioning despite volatile energy prices.
For the second quarter of 2025, EPD declared a quarterly distribution of $0.545 per unit. This represents a 3.8% increase compared to the same period in 2024, signaling a consistent upward trajectory in returning value to shareholders. It represents a 1.9% increase sequentially.
Beyond distributions, EPD has also been active in equity repurchases. The company repurchased $110 million of its common units during the second quarter of 2025. This brought total buybacks for the year to $170 million. For 2024 in total, the company did $219 million in stock buybacks.
This opportunistic use of buybacks is particularly noteworthy given the weakness in energy equities during the second quarter. Energy was the worst-performing sector in the second quarter. Distribution growth is a key focus for MLPs, reflecting the health and profitability of their operations. However, buybacks tend to be used more opportunistically.
Midstream companies, with their fee-based business models, offer a degree of defensiveness against the recent volatility of energy and equity markets. This structure makes their cash flows less sensitive to commodity price fluctuations, providing a more stable and predictable income stream. This stability, combined with above-average yields and attractive valuations, underscores the appeal of the midstream sector.
Plains All American (PAA/PAGP) is another holding in ALPS’ Alerian MLP ETF (AMLP) and Alerian Energy Infrastructure ETF (ENFR) that has announced its second-quarter distribution, maintaining its current payout.
Energy Infrastructure ETFs Offer EPD Exposure
EPD and PAA are both holdings in the Alerian MLP ETF (AMLP), while EPD and PAGP are holdings in the Alerian Energy Infrastructure ETF (ENFR).
AMLP delivers exposure to the Alerian MLP Infrastructure Index (AMZI), which is a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs that earn most of their cash flow from midstream activities. AMLP is the largest MLP ETF and the second-largest energy ETF.
ENFR provides exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American midstream energy infrastructure companies, including C-corps and MLPs, engaged in the pipeline transportation, storage, and processing of energy commodities. ENFR is the lowest-cost ETF in the energy infrastructure segment.
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