Archive

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

Week Thoughts: Low Energy

13Aug
MLPs took it on the chin again this week, down 4.2%.  It was the worst weekly decline of 2017 and worst since the week before the election in November 2016.  MLPs are down 6.2% in the last 7 trading days.  Lower oil prices and abysmal results from PAA dragged the MLP sector down.  The stock market had its worst week since March, offering little help for

Week Thoughts: Quorum for FERC, MLP Investor Quorum Elusive

06Aug
MLPs declined 1.4% including distributions this week, despite flat oil prices near $50/bbl, a flat broader market and still low interest rates.  The price index dropped to its lowest level since late June, reversing the slight bounce in July.  The equal weight version of the MLP Index underperformed by 50 basis points this week, indicative of small cap

Week Thoughts: MLPs on Mute

30Jul
Oil was up all week long, MLPs were flattish all week long.  The MLP Index finished exactly where it started on a price basis, but distributions added 0.8% to tilt total return slightly positive. With a benign set of results and robust commodity backdrop, muted MLP price action this week is discouraging.  There are several possible reasons for

Week Thoughts: Excellent Adventure for KMI, Bogus Journey for MLPs

23Jul
Recent MLP tailwinds (oil prices, lack of equity issuance) reversed this week, pumping the brakes with a 1.9% decline after 3 weeks of outperformance.  The move this week reversed last week’s 1.9% gains and mirrored the drop in oil prices. NGL prices were up and interest rates declined, but otherwise prime conditions from last week were not in place this