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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Miller Howard Investments MLP Strategy 2026 Q2 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q2 2026 Letter Analysis

Miller Howard Investments MLP Strategy Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Miller Howard Investments MLP Strategy. This analysis is provided for institutional research purposes only and is not investment advice.

SOURCE UNAVAILABLE

Fund Returns

Annualized+13.4%

Positioning StanceCONSTRUCTIVE

GeographyUS

Digest Analysis

Quick Take

"Miller Howard sees midstream energy infrastructure poised to capitalize on two structural tailwinds: LNG export growth accelerated by Middle East supply disruptions and data center buildout requiring natural gas infrastructure."

Executive Summary

Miller Howard's MLP & Midstream strategy focuses on natural gas infrastructure benefiting from two key tailwinds: LNG exports and data center growth. The war in the Middle East has taken Qatari LNG facilities offline for three to five years, easing concerns about US LNG overbuilding and strengthening the case for North American energy security. Meanwhile, data centers continue signing long-term contracts for natural gas supply despite regulatory pushback. The EIA projects pipeline capacity additions of 17 Bcf/d in 2026, 28 Bcf/d in 2027, and 31 Bcf/d in 2028, representing the largest buildout since 2008. The portfolio holds 16 positions, with four announcing dividend increases averaging 4.2% year-over-year. The manager trimmed Genesis Energy due to disappointing offshore volumes and increased Sunoco based on strong income characteristics and financial strength. Looking ahead, the manager expects new project cash flows to support lower leverage, higher distribution growth, and potential buybacks, positioning the sector favorably for long-term investors seeking income and growth.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The portfolio holds 16 positions with specific named holdings and clear rationales for trimming Genesis Energy and increasing Sunoco. The manager provides explicit position-level commentary on 10 companies in the Leaders and Laggards section with specific performance drivers. The thesis around LNG and data centers is clearly articulated with supporting data from the EIA on pipeline capacity additions. However, the portfolio is diversified across 16 names rather than concentrated, and position sizing is not explicitly disclosed beyond one trim and one add. The conviction is moderate-to-high based on clear sector thesis and named positions, but the diversification and lack of explicit sizing caps the score below 0.75.

Growth Outlook

60%

BearishBullish

Neutral (60%)

The manager expresses a constructive view on the midstream sector specifically, stating it is well positioned going forward due to LNG and data center tailwinds. While acknowledging second quarter underperformance due to oil price concerns and tech stock flows, the manager emphasizes that longer-term tailwinds may be stronger due to the Middle East war. The outlook is positive but measured, with specific sector focus rather than broad market enthusiasm.

Risk Appetite

45%

DefensiveAggressive

Balanced (45%)

The portfolio demonstrates selective risk-taking with 16 positions. The manager trimmed Genesis Energy due to underperformance and increased Sunoco based on favorable characteristics, indicating active management rather than aggressive deployment. Four holdings increased dividends, suggesting stable positioning. The approach is tilted toward risk within the midstream sector but not maximum exposure, as evidenced by selective trimming and adding rather than broad deployment.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

The manager trimmed one position (Genesis Energy) and increased one position (Sunoco), representing rotation rather than net deployment. No cash level changes are disclosed, and the letter describes selective activity within an existing 16-position portfolio. Four holdings increased dividends, but this reflects company actions rather than manager deployment. The activity is best characterized as portfolio maintenance and rotation, scoring slightly positive due to the increase in Sunoco, but near neutral overall given the offsetting trim and absence of cash deployment data.

Forward Guidance

55%

CautiousExpansionary

Neutral (55%)

The manager expresses clear intent to participate in LNG and data center themes through natural gas midstream companies, stating these are good ways to participate. The expectation is for continued project announcements over coming quarters and years. However, the letter also notes the manager is awaiting further data center announcements from Kinder Morgan, suggesting a watching posture alongside selective deployment. The bias leans toward deployment in the sector but with selectivity.

Language Signal

65%

BearishBullish

Bullish (65%)

The letter contains predominantly positive directional language: well positioned, strong start, tailwinds continue unabated, stronger, greater premium, more valuable, good way to participate, biggest buildout. Risk language is limited to specific concerns about oil prices impacting the economy and offshore project delays. The balance clearly favors opportunity language over risk language, though the manager acknowledges sector underperformance in Q2 and specific company disappointments.

Perceived Risk

35%

Low RiskElevated

Moderate Risk (35%)

The manager acknowledges moderate risks including concerns that higher oil prices could negatively impact the economy, disruptions from the Middle East war causing low inventories and damaged facilities, and public/regulatory pushback against data centers. However, these risks are mentioned briefly and not dwelled upon. The manager reframes the Middle East disruptions as strengthening the LNG tailwind rather than as a primary risk. The risk discussion is present but not central to the letter, with more emphasis on opportunities than threats.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

The manager sees abundant opportunities within the natural gas midstream sector, citing two major tailwinds (LNG exports and data centers), the largest pipeline buildout since 2008, and continued project announcements expected over coming quarters and years. The letter highlights multiple companies with positive developments (Western Midstream, Sunoco, Targa, Plains All American, TC Energy) and identifies natural gas midstream as a good way to participate in the data center theme. The opportunity set is characterized as broad within the specific midstream sector focus.

Time Horizon

72%

Short-TermLong-Term

Decade+ (72%)

The manager discusses tailwinds playing out over coming quarters and years, with pipeline projects becoming operational through 2028 and Qatar's LNG facilities offline for three to five years. The focus is on multi-year infrastructure buildouts and long-term contracts between midstream companies and data centers. The dividend growth orientation and expectation for cash flow generation over time as projects come online suggests a 2-4 year investment horizon. The language is patient but tied to specific multi-year catalysts rather than indefinite holding periods.