The pullback in MLPs has also made the sector appear cheap on a historical basis.

“The late-year market pullback pushed midstream valuations to levels not seen since the Great Recession of 2008 and 2009. At month-end the group’s median price-to-distributable cash flow (P/DCF) multiple was 7.3x, compared to the long-term average of 11.1x,” Watson said.

The sentiment is also mirrored by other market analysts. For example, Goldman Sachs analyst Michael Lapidis, recently pointed out that the sector now yields an average 8%, while fundamentals are picking up, and the stocks look inexpensive, Barron’s reports. If investors were to account for the three factors together, Lapidis argued that midstream energy stocks could return 33% in 2019 after dividends.

For more information on master limited partnerships, visit our MLPs category.