Alternatives SteelPath commentary on the midstream energy infrastructure industry

October 13, 2026
Latest SteelPath commentary on the Midstream energy infrastructure industry

Each month, the Invesco SteelPath team provides an update and insight on the most recent midstream industry happenings. Each monthly commentary provides:

  • Market performance update
  • Recent news
  • Chart of the month

Midstream equities underperformed the broader markets in September as market participants appeared to express initial concern around rising interest rates, and as more strategic merger and acquisition (M&A) was announced1. In this month’s Chart of the Month we address midstream interest rate exposure, showing that with 90% of its total debt locked into fixed rates, the sector faces minimal immediate exposure to escalating borrowing costs. Further, our research has found that while dramatic interest-rate moves have occasionally coincided with short-term periods of midstream equity weakness, in general, over longer time horizons changes in interest rates have not translated into weaker midstream equity returns.2

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  • 1

    Midstream MLPs, as measured by the Alerian MLP Index (AMZ), ended September down 8.32% from a price perspective and after distributions are considered. The AMZ underperformed the S&P 500 Index’s 0.35% total return loss for the month. The best performing midstream subsector for September was the Other Energy group, while the Water Handling and Services subsector underperformed, on average.

    For the year through September, the AMZ is up 14.78% on a price basis, resulting in a 20.70% total return. This compares to the S&P 500 Index’s 11.77% and 12.73% price and total returns, respectively. The Water Handling and Services group has produced the best average total return year-to-date, while the Natural Gas Pipeline subsector has lagged

    Source: All data sourced from Bloomberg L.P. as of 9/30/2026 unless otherwise stated.
  • 2

    From 2008-2026 there has been eight times when there has been a more than 100 bps increase in interest rates. During such periods, MLPs, as measured by the Alerian MLP Index returned an average of 11.5%. Source: Bloomberg L.P. and the United States Treasury as of 8/31/2026.

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