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So, oil and gas companies engaged in midstream activities should witness solid growth with upward pressure on oil prices. The renewed investor optimism is evident from the Global X MLP & Energy Infrastructure ETF’s (MLPX) 36.9% returns year-to-date compared to SPDR S&P 500 Trust ETF’s (SPY) 12.9% gains. Although the second wave of COVID-19 in India, and the United States’ delicate relation with Iran is causing distress in the oil market, the broader prospects look promising for the industry. The global oil and gas pipeline market is expected to grow at a CAGR of more than 6% over the next five years.
Given this backdrop, we think energy infrastructure stocks Flowserve Corporation (NYSE:FLS), Enable Midstream Partners LP (ENBL), and Star Group L.P. (SGU) have the potential to generate significant returns through the remainder of this year.
