ENFR ETF

Successfully pumping oil and gas is only the first step. It must then be transported to refineries and stored along the way. This is the 'essential' middle step in the process of creating useful fuels.

ENFR offers exposure to midstream oil & gas companies, benefiting from stable cash flows and potential growth, with a 4% yield and a 0.35% fee. The ETF is well-positioned under a Republican administration, which may loosen oil & gas regulations, boosting drilling and midstream company volumes. Geopolitical tensions could shift demand to North American oil, benefiting ENFR's midstream holdings.

There are three key demand drivers in focus for natural gas, which strengthen growth opportunities for midstream players.

Several midstream names have beat expectations and raised guidance as earnings are underway. Earnings from Williams Companies (WMB), Targa Resources (TRGP), Cheniere (LNG), and DT Midstream (DTM) have surprised to the upside.

The lowest-cost ETF in the energy infrastructure category has reached a significant trading milestone.  The Alerian Energy Infrastructure ETF (ENFR) crossed $200 million in assets under management on Wednesday, ending the day with $204 million.

VettaFi recently sat down with Jeff Jewell, CFO of DT Midstream (DTM). Jewell discussed the company's midstream businesses,  growth opportunities for the company, financial guidance, and the outlook for U.S. natural gas demand.

Midstream ETFs recorded strong flows in September, as the subsector outperformed broader energy for another consecutive month. The Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) saw $73 million and $8 million, respectively, in net flows in September.

Artificial intelligence (AI) growth is expected to be a key driver of rising electricity demand. Electricity demand is expected to increase dramatically by the decade's end, as AI model training and running are energy-intensive processes.

Efforts to ramp up Canada's capability for exporting liquefied natural gas are gaining steam.  Cedar LNG recently announced a positive final investment decision on its floating LNG facility with a 3.3 mtpa capacity.