ENFR & Midstream Stocks Rally as Earnings Reinforce Gas-Driven Growth Runway

• • The Alerian Energy Infrastructure ETF (ENFR) surged 9.46% in February, handily outpacing broad US equity indices as Energy remained the best-performing S&P 500 sector so far in 2026. The strong month reflected solid midstream earnings momentum, dividend announcements and renewed investor focus on US natural gas infrastructure as power demand accelerates alongside data-center expansion.
    
    
  • The Gathering & Processing (G&P) segment led ENFR’s performance in February, supported by strong earnings and constructive forward outlooks. Targa Resources Corp. (TRGP, 5.42% weight*) gained more than 17% after reporting record 4Q and full-year 2025 results and reaffirming expectations for record 2026 performance. Growth continues to be driven by robust natural gas and natural gas liquids (NGL) volumes and ongoing Permian Basin development—including the new 275 million cubic feet per day (MMcf/d) Yeti II gas processing plant slated to begin operations in 4Q 2027. Antero Midstream Corp. (AM, 4.15% weight*) gained nearly 19.45% following 4Q 2025 results and 2026 guidance that underscored a capital-efficient growth trajectory.
    
    
  • Also within ENFR’s Gathering & Processing segment, Williams Companies (WMB, 6.43% weight*) highlighted robust growth opportunities for natural gas infrastructure at its February Analyst Day, announcing a 10%+ compound annual growth rate target for adjusted EBITDA from 2025 to 2030 and outlining 7.1 billion cf/d of pipeline projects and 1.9 gigawatt (GW) of power projects in execution. Williams forecasts ~39 Bcf/d of natural gas demand growth through 2035, with liguefied natural gas (LNG) exports and power representing the majority of incremental demand. Notably, Williams has four behind-the-meter power projects underway in support of data centers and a significant backlog of power opportunities with major equipment already secured—Williams shares rose 11.09% in February.
    
    
  • ENFR’s Liquefaction subsector, which involves liquefying natural gas for export, remained a focal point during February. Cheniere Energy Inc. (LNG, 5.25% weight*) returned 11.74% after reporting better-than-expected results, increasing its share repurchase authorization to more than $10 billion through 2030, and guiding to record LNG exports of 51-52 million metric tons in 2026. Separately, US export policy remained supportive as the Department of Energy approved a 12% increase in authorized exports (an additional 0.47 Bcf/d) from Cheniere’s Corpus Christi facility.
    
    
  • Pipeline Transportation (Petroleum) also contributed meaningfully to ENFR’s February performance. South Bow Corp. (SOBO CN, 3.71% weight*) rose 13.19%, with sentiment bolstered further in early March amid reports that the company is evaluating the potential revival of the previously canceled Keystone XL project—a proposed ~550,000 barrels per day (bpd) pipeline connecting Canadian crude to Wyoming—pending necessary approvals and stakeholder support.
  
  

“Overall, total demand for natural gas is expected to grow by 17% through 2030, led by LNG exports.”

– Kim Dang, CEO, Kinder Morgan (January 21, 2026)

LNG Contracting Picks Up Again, Supporting Midstream Volume Visibility

• Long-term LNG contracting accelerated in 2025, improving project visibility and serving as a major catalyst for the energy infrastructure sector. According to recent Energy Information Administration (EIA) analysis, US LNG developers signed 40 million tons per annum (mtpa) of long-term sale and purchase agreements in 2025 (equivalent to 5.2 Bcf/d)—the highest annual volume since 2022—reinforcing the commercial foundation typically required ahead of sanctioning export projects and the related multi-year infrastructure buildouts. Notably, US LNG export capacity is set to double by 2031 based on projects under construction. 
  
  
• ENFR’s portfolio is strategically aligned with natural gas infrastructure, with 36.46% allocated to Natural Gas Pipeline Transportation, 27.04% to Gathering & Processing and 7.51% to Liquefaction.* In total, ~71% of the underlying index is directly linked to the natural gas value chain. This positioning is designed to capture rising US and Canadian natural gas flows and the structural tailwinds supporting G&P and pipeline systems tied to LNG exports and power demand, while emphasizing durable, fee-based cash flows that can support dividends and disciplined capital returns.

• 2025 deal activity was concentrated in several large-scale projects. Port Arthur Phase 2 (1.4 Bcf/d), NextDecade’s (NEXT, 0.41% weight*) Rio Grande Phase 2 (1.2 Bcf/d) and Venture Global’s (VG, 2.11% weight*) CP2 (1.1 Bcf/d) accounted for roughly 3.7 Bcf/d—more than 70% of US LNG capacity contracted in 2025—highlighting where the next wave of US LNG demand is likely to emerge.
  
  
• Why it matters for ENFR: Large LNG projects can increase natural gas volumes moving through gathering/processing and pipeline systems—areas where ENFR is concentrated and where cash flows are tied to throughput and contracts rather than just commodity price moves.
  
  

Source: Bloomberg L.P. and SS&C ALPS Advisors, cumulative performance as of 02/28/2026 and annualized performance as of 12/31/2025 

Performance data quoted represents past performance. Past performance is no guarantee of future results so that shares, when redeemed, may be worth more or less than their original cost. The investment return and principal value will fluctuate. Current performance may be higher or lower than the performance quoted. For current month-end performance call 1-866-759-5679 or visit www.alpsfunds.com. Performance includes reinvested distributions and capital gains.

Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.

Fund inception date: 10/31/2013

Total Operating Expenses: 0.35%

* Weight in ENFR as of 02/28/2026

Top 10 Holdings

As of 02/28/2026, subject to change

Important Disclosures & Definitions

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable.

Performance data quoted represents past performance. Past performance is no guarantee of future results; current performance may be higher or lower than performance quoted.

All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus.

Investments in securities of Master Limited Partnerships (MLPs) involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs.

A portion of the benefits you are expected to derive from the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund’s ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund.

The Fund invests primarily in a particular sector and could experience greater volatility than a fund investing in a broader range of industries.

The Fund may be subject to risks relating to its investment in Canadian securities. Because the Fund will invest in securities denominated in foreign currencies and the income received by the Fund will generally be in foreign currency, changes in currency exchange rates may negatively impact the Fund’s return.

Investments in the energy infrastructure sector are subject to: reduced volumes of natural gas or other energy commodities available for transporting, processing or storing; changes in the regulatory environment; extreme weather and; rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities.

The Fund employs a “passive management” - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively.

Alerian Midstream Energy Select Index (AMEI): a composite of North American energy infrastructure companies. The capped, float-adjusted, capitalization-weighted index constituents are engaged in midstream activities involving energy commodities.

Alerian MLP Index (AMZ): the leading gauge of energy infrastructure MLPs. The capped, float-adjusted, capitalization-weighted index constituents earn the majority of their cash flow from midstream activities involving energy commodities. 

Tailwind: a certain situation or condition that may lead to higher profits, revenue or growth.

One may not invest directly in an index.

ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc., affiliated entities, are unaffiliated with VettaFi and the Alerian Index Series.

ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund.

Not FDIC Insured • No Bank Guarantee • May Lose Value

ALR002050  06/30/2026