Archive

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

Week Thoughts: MLPs Levering Down

14Jan
MLPs paused their recent rally in the first full week of trading since before Christmas.  MLPs faced commodity headwinds Monday, and then equity indigestion Tuesday from the first two big midstream equity offerings of 2017 that combined to raise more than $2.3bn. Still Pulling Levers MLPs started pulling levers in 2015 when it became clear oil