Archive

Week Thoughts: Head or Gut?

18Jun
MLPs had a fourth consecutive 1%+ weekly decline, a streak that hasn’t happened for the MLP Index since October 2008.  Oil prices declined for a fourth straight week as well, big coincidence.  Both are looking a bit oversold at this point.  The trick may be in convincing Amazon that it needs to secure access to refined products for its trucks and

Week Thoughts: Sentimental-Listless

11Jun
Another deflating week in MLP land, although MLPs outperformed oil prices and finished the week on a positive note with some relief Friday.  MLPs finished down 1.1% overall, in-line with utilities.  MLPs have declined 1%+ for 3 straight weeks, which hasn’t happened since November 2015 when KMI’s leverage and dividend cut drama escalated.  On the

Week Thoughts: Washout

04Jun
The MLP index breached 300 on the downside twice and closed the week at its lowest level so far this year and lowest since 12/14/16.  MLPs have dropped 2 weeks in a row, have declined 12% from their January peak, have produced negative total return YTD, and have produced just 3.2% total return the last 12 months.  Adding insult to injury on this short but

Week Thoughts: Back to the Futures

28May
The MLP index pushed higher Monday and Tuesday to reach its highest point since 5/2, before falling back again the last 3 days of the week on weaker oil prices and due to challenge of funding a large equity deal on a Friday before a long weekend. Now that OPEC is behind us, and now that we’ve had 7 straight weekly declines in U.S. oil inventory,

Week Thoughts: Think Global, Buy Local…MLPs

21May
MLPs finished the week strong, rallying 1.8% combined on Thursday and Friday, which was just enough to climb back to even after a 1.9% drop Wednesday.  The selloff Wednesday seemed 100% based on broad stock market weakness, a frustrating headwind when oil prices have been relatively strong of late.  WTI oil futures have traded up in 8 of the last 9 days,

Week Thoughts: Plains Stains, MLPs Remain Positive

14May
MLPs alternated up and down days all week, but finished with a positive Friday that helped the MLP Index finish the week up 0.6% including distributions.  The best day was Wednesday, when MLPs rallied 1.5% on oil price strength following the latest U.S. inventory data points. MLPs still have quite a bit of catching up to do relative to utilities and

Week Thoughts: Transition Offense

07May
MLPs struggled under the weight of oil prices and dropped 2.1% (including distributions) this week.  MLPs have declined in 3 of the last 4 weeks.  The familiar whiff of panic was in the air on Thursday and into Friday when overnight oil prices traded below $44/bbl.  Thursday was the worst day of the year for MLPs.  Friday spelled relief for oil prices

Week Thoughts: MLPs Maintain on Mailbox Money

30Apr
MLPs have entered distribution ex-date season, which means while the price index declined for the week overall, MLPs were slightly positive when factoring in distributions.  Anticipation of those distributions may have supported MLPs relative to the broad energy sector over the last two weeks, even as the rate of distribution cuts remains alarmingly high.

Week Thoughts: Chaotic Commodities Can’t Crush MLPs

23Apr
MLPs showed resilience in the face of sharply lower commodity prices  across the board this week, declining slightly despite oil prices dropping below $50/bbl again.  That resilience was at least partially the reversal of last week’s MLP underperformance vs. strong commodity prices. Again and again throughout the week (e.g. Monday, Wednesday and