Midstream of Consciousness 07/05/26

Research evidence excerpt

Midstream of Consciousness 07/05/26

Midstream & Natural Gas

Midstream of Consciousness

July 5, 2026

MIDSTREAM OF CONSCIOUSNESS

Q2 performance & commodities takeaway…and Mystery Stocks!

Link: Midstream Comps

Exhibit 1: Performance Data

Source: Bloomberg, FactSet.

Wolfe Midstream Annual Proxy Review

We published our 7th annual proxy review note for our midstream coverage last week where we assessed CEO

compensation, annual bonuses and long-term award incentives, change of control payouts, and CEO stock

ownership – check it out here in case you missed it!

Q2 performance review – missing out on the Q2 market rally

Q2 in the books! This was a tough relative quarter for stock performance as U.S. midstream stocks were largely

flat alongside a surging S&P 500 that rose 15% in Q2. Thankfully, we fared better than the Energy GICs (-13%

in Q2), although this isn’t too surprising in a falling oil price environment. The sector is still performing well

YTD up 24% and outperforming the S&P 500 by 14%, largely attributable to a strong Q1. Interestingly, the

AMUS midstream index is now ahead of the Energy GICs YTD even with the war, while significantly outpacing

utility peers by 14% YTD.

Q2 stock performance observations. Interestingly, there was no clear thematic trade in Q2 that drove relative

performance as the top 4 performers were a diverse mix of stocks – TRGP, SOBO, DTM, and WES. This quarter

saw a mean-reversion trade from Q1 at the top of the list with DTM and WES leading the pack. DTM was

widely viewed as a “winner on peace,” since it was not a war beneficiary and didn’t rise with the S&P 500 C-

corp names that benefitted from energy index inflows in Q1. WES stock saw support from robust Q1 results

and the Brazos deal.