Midstream Energy Stocks Weather Industry Headwinds Amid Gloomy Outlook

The midstream energy space is generally less vulnerable to fluctuations in oil and natural gas prices compared to exploration and production operations.

However, the outlook for the Zacks Oil and Gas - Production and Pipelines industry remains gloomy due to conservative spending by upstream companies.

This reduced demand for transportation and storage assets could impact midstream energy players like Kinder Morgan (KMI), The Williams Companies (WMB) and MPLX (LPMPLX).

The Zacks Oil and Gas - Production and Pipelines industry has underperformed the S&P 500 and the broader Oil - Energy sector over the past year, with a one-year price performance of 17.9%.