PGIM Jennison Energy Infrastructure Fund Q1 2025 Commentary

Summary

• The PGIM Jennison Energy Infrastructure Fund posted a solid return, though underperformed the 6.9% return of the Index in the first quarter.
• We see long-term natural gas demand growth as a key tailwind, with midstream infrastructure poised to benefit from AI-driven power needs and LNG export expansion.
• The sector offers high free cash flow yields and trades at a valuation discount to the market, presenting an attractive opportunity amid ongoing financial strength and capital discipline.
• We believe midstream assets' adaptability and essential role in the energy transition position them for sustainable value, with both traditional and renewable energy demand supporting future growth.

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PERFORMANCE RECAP

Energy infrastructure equities had solid positive gains in 1Q25, outperforming the broad market, though underperforming the broad Energy sector. The Energy sector had a strong quarter, after several down quarters in 2024. Oil prices continued to decline during the quarter, though ended