Did the changes to the Alerian MLP Index methodology go far enough towards affirming its status as the best benchmark for the MLP sector?
- No, I was hoping midstream corporations (e.g. TRGP) would be included (43%)
- No, I was hoping general partners that issue K-1s (e.g. ETE) would be included (35%)
- Yes (22%)
Total Voters: 135
MLPs rallied exactly 1.3% for a second straight week. MLPs are now up in 5 out of the last 7 weeks and have gained 6.5% in those 7 weeks. The unusual thing about this week’s rally, however, is that it happened despite a substantial drop in oil prices. MLPs underperformed oil prices in the march from the mid-$40s to the low-$50s, so it’s nice to
MLPs bounced back this week on stabilized oil and gas prices, benign broader stock market and limited equity issuance. Interest rates continue to creep higher and may be contributing to MLPs recently lagging oil’s rally. Most of the gains came Monday as WTI closed above $52/bbl and MLPs rallied more than 2% for their best day since June 23rd. The
MLPs declined 1.1% this week, giving up last week’s minor gains. MLP weakness was likely due to the nearly $1.4bn of equity issued, even though only $127mm was issued in a public offering. Oil prices broke back above $50/bbl and natural gas slipped back below $3.00/mmbtu. NGL prices outpaced both major commodities, and propane continues to standout, up