Archive

Week Thoughts: Astride the Upside Down

12Nov
For a second straight week, MLP Index price returns and total returns straddled 0%; total returns finished just above zero with the aid of distributions. Oil price strength continued, reaching its highest level since July 2015 (above $57/bbl), before consolidating late in the week.  An early cold snap hit the northeast, pushing up natural gas

Distribution Checks

07Nov
It’s been a while since we published a whitepaper on MLPs, which I chalk up to having had little additional insight to offer beyond reporting weekly ups and downs of the sector as it continues its bumpy transition towards a better business model. NEW WHITEPAPER AT CBRECLARION.COM But recently, I’ve become increasingly fascinated by distribution

Week Thoughts: SelfFundMe Campaign

05Nov
MLP prices were down for a 4th straight week, but counting distributions (and they do still count!) MLPs produced a slightly positive return overall, despite Thursday’s 2% decline.  Strong oil and natural gas prices, solid earnings overall were balanced against tax reform uncertainty and distribution ex-dates, both of which held MLPs back from a more

Week Thoughts: Lower Low, Higher Hope

29Oct
After a brief bout of panic early in the week, and a fresh 52-week low on Wednesday, MLPs bounced a combined 3.2% Thursday and Friday to finish the week down just 1.2%, a third straight weekly decline.  Oil had a very strong week, and is positive on the year for the first time in months.  Propane had an even better week, finishing at $1.00 for the first

Week Thoughts: Taking the Under

22Oct
MLPs dropped every day but Thursday this week, finishing down 3.3% since last Friday.  It was the 2nd worst week of the year, 3rd worst week in last 12 months.  The only 2 worse weeks: the week preceding the election (11/4/16) and the week in August when PAA declined 20.4%.  The MLP Index is at its lowest point since 8/28/17.  This came on a strong week

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