Energy midstream companies have fallen out of favor with investors over the years. Many investors are concerned that demand for fossil fuels will go extinct as the world transitions to cleaner alternatives. That would dry up the cash flows midstream companies produce.

However, most industry forecasters expect oil and gas to continue playing a vital role in fueling the economy for decades, with demand expected to keep rising in the coming years. That should supply pipeline companies with stable and growing earnings while giving them time to transition their businesses. In the meantime, investors can collect big-time passive income streams from the space. Three of the most severely underrated midstream companies are Energy Transfer (NYSE: ET),  (NYSE: MPLX), and Delek Logistics Partners (NYSE: DKL).

Energy Transfer doesn't get anywhere near the credit it deserves. The leading master limited partnership (MLP) generates copious cash flows. The company produced over $2 billion in distributable cash flow in the first quarter. It distributed about half that money to investors via a payout yielding an eye-popping 9.7%. It retained the other half to fund expansion projects and continue shoring up its much-improved balance sheet.

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Source Fool.com