Archive

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

Week Thoughts: Simplixity Itself

08Jan
MLPs started the year with 4 straight positive days and a 2.5% weekly gain.  MLPs have traded up in 13 of the last 15 trading days dating back to 12/14.  For the week, MLPs outperformed utilities and the S&P 500 despite flat oil prices and natural gas prices that were crushed. The first week of last year was -7.9%, the worst first week ever for

Week Thoughts: December Gains Cap MLP Rebound Year

01Jan
MLPs (as measured by the Alerian MLP Index) dropped back a bit over the last 4 days of the year, but as measured by the equal weight version, MLPs were slightly higher.  In both cases, MLPs outperformed the S&P 500.  Oil and natural gas prices were both up, and both finished the year with massive gains after the carnage of the last few

Week Thoughts: Higher Highs for Holidays

24Dec
MLPs posted a 3.9% gain this week, their biggest week in more than 3 months. MLPs were up each day this week and each of the last 7 trading days.   The streak has put some distance between the 300 level of the AMZ, which would now have to fall 5.4% to cross back below 300. MLPs look like they will finish the last 9 days of the year strong for an

MLP Week Thoughts: Beginning to Look a Lot Like Christmas

18Dec
MLPs crossed back over “the 300” two more times this week, but finished on the good side and +1.2% on the week.  Large cap MLPs beat smaller MLPs as evidenced by the spread between the AMZ and its equal weight cousin.  Interest rates pushed higher, but yield-based equities found support while the S&P 500 traded sideways. Oil prices bounced

Week Thoughts: MLPs Lag Despite Right Stuff

11Dec
MLPs rallied this week, but underperformed the S&P 500 (more on that below).  Winter showed up in force, sending front month natural gas to its highest level in years. Interest rates rose a bit and may have held MLPs back, but doesn’t seem like it when utilities nearly kept pace with the broad market. PEOTUS Donald Trump is doing his best to