Archive

Week Thoughts: MLP Comfort Zone

02Apr
MLPs caught some positive oil correlation this week, bouncing back 2.1%.  MLPs finished the week/month/quarter strong with a 1.4% gain Friday.  MLPs beat the S&P 500 and utilities for the week. There’s a sappy quote I came across on the internet about comfort zone from an unknown source: “A comfort zone is a beautiful place, but nothing

Week Thoughts: Pending Catalysts

26Mar
MLPs finished the week negative overall, but showed relative strength against the broad market and energy stocks (but not against utilities). Oil prices drifted lower on an unwind of long oil bets, driven by concerns U.S. production growth is too much, raising uncertainty about the next OPEC meeting, even though its 2 months away.  Without much

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