Investors in Houston, Texas, found a mix of performance metrics in their investment portfolios as of September 30, 2024. The quarter saw fluctuations in figures across various funds, including Invesco SteelPath MLP Select 40 Fund Class A (MLPFX), demonstrating different growth rates. While certain sectors like natural gas pipelines outperformed during the quarter, others like propane and marine sub-sectors faced challenges due to specific factors affecting select participants.

For MLP-focused investment vehicles, the third quarter of 2024 experienced approximately $313 million in net inflows, reflecting investor confidence in this sector. The capital investment in MLPs included significant spending on organic projects, ranging from $5.0 to $6.0 billion, while corporate mergers and acquisitions (M&A) remained robust. These factors have contributed to the availability of free cash flow for debt retirement, unit repurchases, and distribution increases in the sector.

Despite fluctuations in oil and gas prices, the midstream equities market remains attractive for investors in terms of yield and total return potential. Valuations are deemed favorable, with expectations for cash flow growth in the sector. The long-term average yield spread between bonds and MLPs indicates the potential for solid returns in the future. Additionally, with a focus on key producing basins and supporting activities like LNG exports, midstream equities are poised to offer a stable investment option for investors.

In terms of individual fund performance, companies like Targa Resources Corp. (TRGP) and ONEOK Inc. (OKE) outperformed during the quarter with positive financial results and strategic investments. Conversely, Genesis Energy LP (GEL) and Western Midstream Partners LP (WES) faced challenges, impacted by factors like EBITDA guidance reductions and share sales below market prices. These dynamics showcase the diverse landscape of the midstream sector, balancing opportunities and risks for investors in the market.