Archive

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

Week Thoughts: Prime Conditions Prolong MLP Primacy

16Jul
The MLP Index finished the week decisively above 300, up 9.9% from its recent (6/21) low, after a 1.9% week that included a furious late Friday ramp.  Oil prices rose each day of the week, including 4 straight 1%+ days to finish the week.  MLPs resisted rallying for most of the week, but eventually relented. Just when sentiment was at its worst and

Week Thoughts: Oil Takes Another Licking, MLPs Keep on Ticking

09Jul
MLPs reversed intra-day to finish positive Friday, which when combined with outsized gains Monday, was enough to finish the week slightly positive.  That makes two straight positive weeks and two straight weeks of outperforming the S&P 500 and utilities.    MLP capital markets activity has been negligible for over a month now, which is perhaps a

Week Thoughts: Seeking a Better Half

02Jul
Sweet relief came this week in the form of 7% higher oil prices that helped MLPs break a grueling 5 week losing streak.  At 4.2%, it was the second best week of the year, a strong finish to a disappointing first half for MLPs.  MLPs have traded up 7% since their 6/21 52-week low.  Rising interest rates was problematic for utilities and the S&P 500

Week Thoughts: Friday I’m in Love

24Jun
MLPs made it a 5th straight 1%+ decline weeks, the longest such streak since October 2008, pushed lower by falling commodity prices.  MLPs have never been down 1%+ for 6 straight weeks, and the late week bounce offers hope the streak will end.   But late week hope doesn’t always carry over, MLPs have had their best day of the week on Friday each of the