Archive

Week Thoughts: Get Pain While You Wait

18Mar
MLPs made it two straight negative weeks with a 0.9% decline.  Oil prices finished up slightly on the week, stepping back from the abyss with a bullish inventory report Wednesday.  We got an oil relief rally, a FED relief rally, even a Canadian jacket company IPO.  Still, MLPs failed to attract broad-based buying.  NGL prices were down sharply, perhaps

Week Thoughts: MLPs Plan, Oil Laughs

12Mar
MLPs wilted this week, down 3% under pressure from oil’s return to the market’s front burner.  Other negative factors were rising interest rates rising and a stock market not achieving any new highs.  Oil was down more than 9% week over week, breaking below $50/bbl for the first time this year.  Natural gas crossed back onto the good side of $3.00 on

Week Thoughts: MLPs SNAP Back, Pivot

05Mar
MLPs bounced back this week, despite spiking interest rates and some oil volatility.  MLPs finished up 1.1%, riding the wave of optimism that took over the market on Wednesday following President Trump’s tempered joint session of Congress speech. No equity deals and execution of previously announced M&A also probably helped MLP

Week Thoughts: Clean Up Trades Leave MLPs Sloppy

26Feb
MLPs declined late in the week as equity issuance overwhelmed the sector.  For the week overall, MLP Index was down 2.1%, the worst week for the Index since the week preceding the election in November.  It was also the first weekly decline of more than 2% for the MLP Index so far this year.  Despite some volatility this week, volatility remains miles

Week Thoughts: Mercury Rising, MLPs Flat

19Feb
MLPs have done a whole lot of nothing the last two weeks, including a marginal total return this week.  Oil hasn’t moved much either, hovering just above $53/bbl for 5 straight weeks.  The broad market continues to melt up, which hasn’t hurt MLPs or oil prices.  MLP specific newsflow did confirm 3 positive trends: (1) improving capital markets

Week Thoughts: MLP Recovery One Year In

12Feb
MLPs were little changed this week overall, finishing down 0.4% overall, for a nice round 7.5% total return for the year overall, well ahead of the S&P 500, utilities and oil prices.  Oil prices were volatile this week, but remain comfortably above $50/bbl.  Gas prices remain above $3.00/mmbtu, but with much less of a cushion than at the beginning of

Week Thoughts: FERC IDRs

05Feb
MLPs were up for a 3rd straight week (on a total return basis), edging out the S&P 500 and utilities.  NGL prices shot higher, while natural gas prices dropped, improving processing economics and helping commodity-levered gathering & processing MLPs.  The Alerian MLP Index has produced 7.9% total return so far this year, and the total return index

Week Thoughts: American Splendor, Canadian Carnage

29Jan
A combination of correlation (with oil strength), causality (pipeline executive orders) and seasonality (January effect, distribution capture) sent MLPs shooting 5.5% higher for the week overall, in the best week of trading for the MLP Index since April of last year.  Tuesday and Wednesday were both 2%+, the first back-to-back 2%+ days since that same week

Week Thoughts: Wait for It

22Jan
MLPs and most everything were flattish this week, with the AMZ up 0.1%, although the equal weight Alerian MLP Index was better. Interest rates rose a bit, but so far in 2017 the initial post-election rate spike hasn’t followed through with just 2 basis points increase in the 10-year U.S. Treasury rate.  There was volatility in natural gas on warmer