Archive

Week Thoughts: MLPs in Moderation

15Oct
Oil prices, natural gas prices, S&P 500, utilities, and U.S. Treasury notes all traded up this week.  MLPs did not.  Distribution surprises (cuts and moderations) were not well received.  The MLP market was firming ahead of earnings but clearly remains skittish when it comes to distributions, which clearly still matter quite a bit to a large portion

Week Thoughts: MLPs Float Higher, Without Aid of Oil

08Oct
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

Week Thoughts: Anti-CliMax Weight

01Oct
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

Week Thoughts: MLPs Take a Knee

24Sep
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

Week Thoughts: MLPs Hit their Macros, See Gains

17Sep
MLPs crept higher each day this week, before a 0.5% decline Friday limited weekly gains to 1.1%.  MLPs have rallied 3 out of the last 4 weeks, and the Index is up 6.3% off the recent (8/21) bottom.  Oil, natural gas and the broader equity market were all up this week, the stars were aligned, so it would be strange if MLPs didn’t go up. IPO

Week Thoughts: Aftermath

10Sep
MLPs finished this short week down 0.9%, their first negative week since mid-August.  Broad stock market weakness dragged MLPs lower Tuesday (despite higher oil prices) and oil price weakness dragged MLPs down Friday.  Interest rates dropped another 11 basis points, and the U.S. dollar index (DXY) reached its lowest level since December 2014, helping oil

Week Thoughts: Seeking Higher Ground

02Sep
MLPs continued to rally this week.  Like last week, Monday was negative, but each day the rest of the week was positive.  MLPs have traded up in 8 of the last 9 sessions, +6.0% over that time since hitting a fresh 52-week low back on 8/21.  MLPs were resilient after early selling Monday and Tuesday, and followed through the rest of the week. A

Week Thoughts: No News is Good News

26Aug
MLPs hit a fresh 52-week low, then rallied each day the rest of the week, rallying 3.3% off Monday’s close and 2.0% from last Friday.  MLPs outperformed utilities and the S&P 500 for the first time in a while.  Oil price weakness plus a looming Hurricane Harvey were not large enough factors to hold MLPs back from a bounce a brutal three weeks of

Week Thoughts: A Chip and a Chair

20Aug
MLPs declined another 3.3% this week, unable to rebound from a brutal few weeks largely because of a fund flow imbalance caused by a $1bn offering that had to be digested.  The reeling MLP sector underperformed the broader stock market (S&P 500 -0.6%) and utilities (+1.2%).  Oil prices were lower for most of the week before a rally Friday that brought