15 Biggest Midstream Companies Heading into 2023

15. Hess Midstream LP (NYSE:HESM)

Market Capitalization as of November 12, 2022: $6.9 billion

Hess Midstream LP (NYSE:HESM) gathers, stores, and processes oil and natural gas. The company has
access to thousands of miles of gas and oil pipelines, which can process roughly 450 million cubic feet of
natural gas and natural gas liquids per day. It is headquartered in Houston, Texas, the United States.

Hess Midstream LP (NYSE:HESM) has produced strong operating cash flow growth over the past three
years. Between 2020 and 2021, its cash flows grew by a strong 24% annually, a remarkable achievement
for a capitally intensive company. During the first half of this year, Hess Midstream LP (NYSE:HESM)
reported another $404 million in operating cash flows, which continued to grow, at a rate that naturally
slowed down due to the previously high readings.

Hess Midstream LP (NYSE:HESM) pays a 56 cent dividend for a 7.79% yield and its shares are up 3.51%
year to date. The firm's latest market capitalization is $6.9 billion.

Hess Midstream LP (NYSE:HESM)'s largest investor in our database is Schonfeld Strategic Advisors which
owns 355,700 shares that are worth $9.9 million.

Enbridge Inc. (NYSE:ENB), Enterprise Products Partners L.P. (NYSE:EPD), and TC Energy Corporation
(NYSE:TRP) are met by Hess Midstream LP (NYSE:HESM) in our list of the world's largest midstream oil
and gas companies

14. DCP Midstream, LP (NYSE:DCP)

Market Capitalization as of November 12, 2022: $8 billion

DCP Midstream, LP (NYSE:DCP) is an American company that operates midstream oil and gas assets such
as gas processing plants. The firm is headquartered in Denver, Colorado.

DCP Midstream, LP (NYSE:DCP) posted a strong fiscal third quarter, which revealed that it had grown its
revenues by a whopping 52% annually and turned a $6 million operating loss in the previous quarter to
$247 million in operating profit. During that time period, the firm transported 731,000 barrels of natural
gas liquids daily, and its distributable cash flow jumped by 29.6% annually.

DCP Midstream, LP (NYSE:DCP) pays a 43 cent dividend for a 4.44% yield. After its shares dipped in June,
they have reversed all their losses and are now up 35% year to date.

DCP Midstream, LP (NYSE:DCP)'s largest investor is Ken Griffin's Citadel Investment Group which owns
55,773 shares that are worth $1.6 million.

13. Plains All American Pipeline, L.P. (NASDAQ:PAA)

Market Capitalization as of November 12, 2022: $8.6 billion

Plains All American Pipeline, L.P. (NASDAQ:PAA) gathers, transports, and stores both oil and natural gas
liquids. The firm has thousands of miles of pipelines, and it can store more than a hundred million
barrels of crude oil. Plains All American Pipeline, L.P. (NASDAQ:PAA) is headquartered in Houston, Texas,
the United States.

Plains All American Pipeline, L.P. (NASDAQ:PAA) has been having a good year so far, and the firm's latest
quarter saw it raise its operating income guidance by another 3.2%. This managed to push the guidance
up by 11% since the firm had first provided it at the start of the year. The firm also transported a
whopping 11.3 million barrels of oil per day during the third quarter.

Plains All American Pipeline, L.P. (NASDAQ:PAA) has an $8.6 billion market capitalization and it pays a 22
cent dividend for a 7.06% yield.

Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital is Plains All American Pipeline, L.P.
(NASDAQ:PAA)'s largest investor. It owns 1.6 million shares that are worth $16 million.

12. Magellan Midstream Partners, L.P. (NYSE:MMP)

Market Capitalization as of November 12, 2022: $10.86 billion

Magellan Midstream Partners, L.P. (NYSE:MMP) transports a wide variety of fuels such as diesel,
kerosene, heating oil, aviation fuel, and gasoline to a host of different customers such as retailers and
wholesalers.

Magellan Midstream Partners, L.P. (NYSE:MMP)'s shares have returned 10% year to date, a smack in the
middle of a bear market. However, despite this, the firm is still trading at only roughly 10x of its cash
flow, indicating that there might be some more growth left in the stock. This conjecture is boosted by its
latest quarterly results, which saw the company grow revenue by 37%.

Magellan Midstream Partners, L.P. (NYSE:MMP)'s market capitalization is $10.86 billion.

Magellan Midstream Partners, L.P. (NYSE:MMP)'s largest investor is Jean-Marie Eveillard's First Eagle
Investment Management which owns 1.5 million shares that are worth $74 million.

11. Western Midstream Partners, LP (NYSE:WES)

Market Capitalization as of November 12, 2022: $10.92 billion

Western Midstream Partners, LP (NYSE:WES) compresses, treats, processes, and transports natural gas,
natural gas liquids, and crude oil. The firm is based in The Woodlands, Texas, the United States.

Western Midstream Partners, LP (NYSE:WES) has bought close to $447 million of its stock in the first
three quarters of this year, indicating management confidence in the stock's future prospects. Firms
generally only repurchase their shares if they believe that the stock is undervalued or when they want to
satiate investors. Since Western Midstream Partners, LP (NYSE:WES) has performed well this year, the
latter is unlikely.

Western Midstream Partners, LP (NYSE:WES) pays a 50 cent dividend for a 7.05% yield, and its shares are
up 26% year to date. The firm has $10.92 billion in market capitalization.

Western Midstream Partners, LP (NYSE:WES)'s largest investor is Peter Rathjens, Bruce Clarke, and John
Campbell's Arrowstreet Capital which owns 1.2 million shares that are worth $29 million.

10. Targa Resources Corp. (NYSE:TRGP)

Market Capitalization as of November 12, 2022: $16.44 billion

Targa Resources Corp. (NYSE:TRGP) deals exclusively with natural gas liquids (NGLs) and NGL products.
The firm stores and transports these to different end users. It is headquartered in Houston, Texas.

Targa Resources Corp. (NYSE:TRGP) mirrored the strong revenue growth trend in the midstream segment
during its third quarter. Its fiscal results revealed that the company had grown its revenue by 20%. This
growth came as Targa Resources Corp. (NYSE:TRGP) also increased its shipments by 19.9% annually to
transport 499,500 barrels of NGLs per day.

Targa Resources Corp. (NYSE:TRGP) pays a 35 cent dividend for a 1.93% yield. It has a $16.44 billion
market capitalization.

Stuart J. Zimmer's Zimmer Partners is Targa Resources Corp. (NYSE:TRGP)'s largest investor through a
$185 million stake that comes via 3 million shares.

9. Pembina Pipeline Corporation (NYSE:PBA)

Market Capitalization as of November 12, 2022: $19.33 billion

Pembina Pipeline Corporation (NYSE:PBA) transmits heavy oils and other similar products. It also
provides equipment to other companies for storing and fractionating fuels. It is headquartered in
Calgary, Canada.

Pembina Pipeline Corporation (NYSE:PBA) handled a whopping 3.4 million barrels of oil equivalent per
day in its third quarter, with the reading remaining relatively flat over the year. The firm also has a stable
business model, since more than 80% of its contracts are fixed and long term in nature, with typical time
periods ranging between five to ten years.

As of November 12, 2022, Pembina Pipeline Corporation (NYSE:PBA) had a $19.33 billion market
capitalization.

Pembina Pipeline Corporation (NYSE:PBA)'s largest investor is Jim Simons' Renaissance Technologies
which owns 631,212 shares that are worth $22 million.
8. ONEOK, Inc. (NYSE:OKE)

Market Capitalization as of November 12, 2022: $28.89 billion

ONEOK, Inc. (NYSE:OKE) is a natural gas midstream company. The firm gathers, stores, processes, and
transports the fuel all over the U.S. It is based in Tulsa, Oklahoma.

ONEOK, Inc. (NYSE:OKE) has a strong dividend coverage ratio of 1.6x for this year and 1.8x for 2023,
despite the fact that it is one of the smaller players in its industry. The firm's exclusive focus on natural
gas and the fact that its contracts are tied to prices are slated to benefit it during the current
environment that is seeing U.S. gas companies replace Russia as Europe's primary natural gas supplier.

Additionally, ONEOK, Inc. (NYSE:OKE) has a strong dividend yield of 5.78% through paying a 93 cent
dividend, while the market values it at a whopping $28.89 billion.

ONEOK, Inc. (NYSE:OKE)'s largest investor is Ken Griffin's Citadel Investment Group which owns 682,050
shares that are worth $37 million.

7. MPLX LP (NYSE:MPLX)

Market Capitalization as of November 12, 2022: $34 billion

MPLX LP (NYSE:MPLX) stores and transports both natural gas and crude oil. The firm operates all over
the globe and it is based in Findlay, Ohio.

MPLX LP (NYSE:MPLX) is expanding its pipeline infrastructure in the Permian basin area, which it
currently serves through the Whistler pipeline that has a capacity of 2 billion cubic feet per day. The
company is aiming to grow this to 2.5 million cubic feet, during a time when global interest in natural gas
is at its highest in recent years.

MPLX LP (NYSE:MPLX) has a $34 billion market capitalization and it pays a 78 cent dividend for a strong
9.14% yield.

6. Energy Transfer LP (NYSE:ET)

Market Capitalization as of November 12, 2022: $37.67 billion

Energy Transfer LP (NYSE:ET) has more than 30,000 miles of natural gas and natural gas transportation
pipelines under its wing. The firm operates in several different American states and cities, such as Texas,
Pennsylvania, Oklahoma, and Ohio. It is headquartered in Dallas, Texas.

Energy Transfer LP (NYSE:ET) is the world's largest natural gas liquid exporter, as the company is
responsible for supplying a stunning 20% of the global market. The ongoing boom in the energy market
has also helped the company's balance sheet, as while its debt levels have stayed constant, the debt to
operating income ratio is currently 3.96x, which is at the bottom end of its five year range.
Energy Transfer LP (NYSE:ET) pays a 27 cent dividend for a 8.69% yield. It has a $37.67 billion market
capitalization.

Energy Transfer LP (NYSE:ET)'s largest investor is David Abrams' Abrams Capital Management which
owns 22 million shares that are worth $220 million.

Energy Transfer LP (NYSE:ET) joins Enterprise Products Partners L.P. (NYSE:EPD), Enbridge Inc.
(NYSE:ENB), and TC Energy Corporation (NYSE:TRP) in the list of some of the biggest midstream
companies out there.

Enbridge

Energy Transfer

Enterprise Products Partners

TC Energy

Kinder Morgan

14. DCP Midstream, LP (NYSE:DCP)

Revenue 2021: $10.70B

Number of Hedge Fund Holders: 3

DCP Midstream, LP (NYSE:DCP) is a Denver, Colorado-based Fortune 500 provider of midstream

petroleum and natural gas services.

DCP Midstream, LP (NYSE:DCP) claims to process over five billion cubic feet of gas and generate over
400,000 barrels of natural gas liquids (NGLs) on a daily basis. The company’s natural gas infrastructure
has the capacity to supply gas to multiple markets and pipelines for downstream transportation.
Numerous DCP Midstream LP’s (NYSE:DCP) outlets deliver gas to upscale markets in the east of the
United States, substantially boosting the viability of the company’s business endeavors in and near its
natural gas collection systems. The most sought-after, liquids-rich basins, including the Eagle Ford,
Permian Basin, and DJ Basin, are home to the company’s asset base, which consists of 36 operational
facilities and around 51,000 miles of pipeline. The company’s extensive operations make it one of the
biggest natural gas pipeline companies in the world.

13. ONEOK, Inc. (NYSE:OKE)

Revenue 2021: $16.54B

Number of Hedge Fund Holders: 29

ONEOK, Inc. (NYSE:OKE) is a Tulsa, Oklahoma-based midstream service provider with an extensive
presence in the transportation of natural gas and natural gas liquids (NGL) segments.

In the past eight years, ONEOK, Inc. (NYSE:OKE) has observed consistent growth in EBITDA. On December
21, Neal Dingmann at Truist increased the price target on ONEOK, Inc. (NYSE:OKE) from $69 to $73 and
reiterated a Buy rating on the stock. Despite the continued downward pressure on commodity prices due
to the uncertain macroeconomic outlook, the analyst sees stable operations of ONEOK, Inc. (NYSE:OKE)
to aid the company’s growth. The analyst added that compared to its peer in the midstream segment,
ONEOK, Inc. (NYSE:OKE) should see its earnings and cash flow remain more stable.

12. Kinder Morgan, Inc. (NYSE:KMI)

Revenue 2021: $16.61B

Number of Hedge Fund Holders: 38

Kinder Morgan, Inc. (NYSE:KMI) is a Houston, Texas-based energy infrastructure solutions provider. The
company has 133,500 km of pipelines in its portfolio, making it one of the biggest energy infrastructure
companies in North America.

Kinder Morgan, Inc. (NYSE:KMI) also has the distinction of having the biggest natural gas network
globally and transports 40% of the natural gas produced in the US. The stock was one of the new buys
for Soros Fund Management during Q3 2022. Kinder Morgan, Inc. (NYSE:KMI) stock offers a stellar
forward dividend yield of 6.1% as of January 13. The company is increasingly working on ramping up its
natural gas transportation volume and has a defensive nature of business.

11. Targa Resources Corp. (NYSE:TRGP)

Revenue 2021: $16.95B

Number of Hedge Fund Holders: 30

Targa Resources Corp. (NYSE:TRGP) is a Houston, Texas-based midstream infrastructure company that
has the distinction of being one of the largest natural gas and NGL delivery companies in the US.

On November 29, Neal Dingmann at Truist increased the price target on Targa Resources Corp.
(NYSE:TRGP) from $85 to $90 and reiterated a Buy rating on the stock. The target price reflects a
potential upside of over 27.3% from the closing price as of January 13. The analyst believes that the
strong growth outlook of the entity is expected to remain stable, with more positive results expected in
the second half of 2023 and 2024.

Targa Resources Corp. (NYSE:TRGP) was held by 30 hedge funds as of Q3 2022.

10. Berkshire Hathaway Energy

Revenue 2021: $25.1 billion

Berkshire Hathaway Energy is a subsidiary of Omaha, Nebraska-based diversified conglomerate holding

company Berkshire Hathaway Inc (NYSE:BRK-A) with a portfolio of over $85 billion.

The subsidiary is 92% owned by the Warren Buffett-led Corporation and led by Greg Abel as the
President, Chairman, and CEO. Mr. Abel has been chosen to take over from Warren Buffett once he
retires. This would mean that the interests of the subsidiary could play an important role in formulating
the group’s future growth strategy. Berkshire Hathaway Energy has a pipeline network of over 34,000
kilometers that is responsible for supplying 15% of the natural gas used across the US. The company
made a foray into the natural gas pipeline business through the $9.7 billion investment in July 2020.

Here' s what Berkshire Hathaway said about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q4 2021
investor letter:

“BERKSHIRE HATHAWAY INC.

To the Shareholders of Berkshire Hathaway Inc.:

Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are
honored by your trust.
Our position carries with it the responsibility to report to you what we would like to know if we were the
absentee owner and you were the manager. We enjoy communicating directly with you through this
annual letter, and through the annual meeting as well.

Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor
large institutions. Whenever possible, also, we release important communications on Saturday mornings
in order to maximize the time for shareholders and the media to absorb the news before markets open
on Monday.

A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files
with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail
engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.

Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing
the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue
to be.

What You Own

Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group
largely consists of marketable common stocks of major American companies. Additionally, we own a few
non-U.S. equities and participate in several joint ventures or other collaborative activities.

Whatever our form of ownership, our goal is to have meaningful investments in businesses with both
durable economic advantages and a first-class CEO. Please note particularly that we own stocks based
upon our expectations about their long-term business performance and not because we view them as
vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are
business-pickers…” (Click here to see the full text)

9. Enterprise Products Partners L.P. (NYSE:EPD)

Revenue 2021: $40.81B

Number of Hedge Fund Holders: 21

Enterprise Products Partners L.P. (NYSE:EPD) is a Houston, Texas-based midstream natural gas pipeline
corporation. The company owns over 80,000 km of pipelines.

Along with 23 other midstream companies, Spiro Dounis at Citi initiated coverage on Enterprise Products
Partners L.P. (NYSE:EPD) stock with a Buy rating and a target price of $31 on December 8. The analyst
chose the company as one of the top three picks in the midstream infrastructure industry. Enterprise
Products Partners L.P. (NYSE:EPD) stock also offers an attractive forward dividend yield of 7.8% as of
January 13 and has increased its annual dividend for the past 24 years. The company operates as a
master limited partnership (MLP), which requires it to distribute 90% of its taxable income to
shareholders to receive tax benefits.

Fairholme Capital Management discussed its outlook on Enterprise Products Partners L.P. (NYSE:EPD) in
its Q2 2022 investor letter. Here’s what the firm said:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides
processing and transportation services to producers and consumers of natural gas, natural gas liquids,
and oil. These hydrocarbons are critical for modern life and have few, if any, ready substitutes.
Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than
nine times distributable cash flows and pays a 7.5% cash distribution.”

8. Enbridge Inc. (NYSE:ENB)

Revenue 2021: $41.05B

Number of Hedge Fund Holders: 24

Enbridge Inc. (NYSE:ENB) is a Calgary, Canada-based diversified energy company that transports 20% of
the natural gas used in the US. Furthermore, the company has the distinction of being the third biggest
natural gas utility corporation in the North American region based on consumer count as of 2023.

In December 2022, Enbridge Inc. (NYSE:ENB) announced that it plans to invest $4 billion to boost its
natural gas pipeline infrastructure in British Columbia, Canada. The company intends to leverage the
power of the British Columbia natural gas system to fulfill regional and global needs. Furthermore,
Enbridge Inc. (NYSE:ENB) aims to invest $2.7 billion to boost the production from the T-South pipeline.
The company is working to obtain regulatory approval to build and operate new natural gas pipelines in
2024.
Here's what ClearBridge Investments said about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:

“We are meaningfully overweight energy, particularly within North American energy infrastructure.
Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They
each deliver meaningful proportions of the overall energy produced and consumed in North America.
Their revenues are backed by long-term contracts with high-quality counterparties and have little direct
commodity price exposure. Their growth has been driven by the increasing production of North
American energy. The advent of unconventional oil and gas production (oil sand and shale) has made
North America a low-cost competitor on a global basis. We expect strong North American production to
be an enduring feature of global energy supply for decades to come.”

7. Plains All American Pipeline, L.P. (NASDAQ:PAA)

Revenue 2021: $42.08B

Number of Hedge Fund Holders: 6

Plains All American Pipeline, L.P. (NASDAQ:PAA) is a Houston, Texas-based company that is a provider of
natural gas and other conventional energy sources. The company has over 2,600 km of active natural gas
liquid (NGL) transportation pipelines.

On December 8, Spiro Dounis at Citi initiated coverage on Plains All American Pipeline, L.P.
(NASDAQ:PAA) stock with a Buy rating and a target price of $14. The company started coverage on 23
midstream companies and highlighted that the midstream industry has a positive cash flow outlook, but
investors need to be selective in picking the right stocks in the industry. Dounis added that the
companies have been prudent in their capital spending and have kept leverage under control.

6. Energy Transfer LP (NYSE:ET)

Revenue 2021: $67.42B

Number of Hedge Fund Holders: 33

Energy Transfer LP (NYSE:ET) is a Dallas, Texas-based transporter of natural gas and propane through a
pipeline coverage of 144,500 km.
Energy Transfer LP (NYSE:ET) offers an attractive forward dividend yield of 8.9% as of January 20. The
company has a presence in 41 states across the US and an international office located in Beijing. Analysts
think Energy Transfer LP (NYSE:ET) stock is currently trading at a discount to its five-year average
EV/EBITDA ratio of 8.85x. According to the Bank of America global quantitative strategy team, Energy
Transfer LP (NYSE:ET) was also one of the top overweight stocks amongst long-only funds in the US in
November 2022.

In addition to Energy Transfer LP (NYSE:ET), PetroChina, Chevron Corporation (NYSE:CVX), and Saudi
Arabian Oil Company (TADAWUL:2222.SR) are also some of the biggest natural gas pipeline companies in
the world.