Archive

Week Thoughts: Best Week for MLPs Since March 2009

04Jan
MLPs took off like they were shot out of a cannon this week. We'll see how long it takes for gravity to take effect. Perhaps gravity will take the form of a fresh slew of equity offerings in the coming weeks, or the next DC crisis which we forestalled for at least a month or two this week. But for now, its all good. MLPs were up each of the 4

Week Thoughts: Head or Gut?

18Jun
MLPs had a fourth consecutive 1%+ weekly decline, a streak that hasn’t happened for the MLP Index since October 2008.  Oil prices declined for a fourth straight week as well, big coincidence.  Both are looking a bit oversold at this point.  The trick may be in convincing Amazon that it needs to secure access to refined products for its trucks and

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 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: MLP Risk-on Rally Resumes

20Mar
MLPs resumed their March back towards flat for the year with a 4.8% week.  MLPs were helped by oil prices, which were helped by a weaker dollar, which was helped by a dovish Fed. MLPs outperformed oil prices after lagging last week’s big oil move. Small-cap and commodity exposed midstream MLPs outperformed.  The Alerian MLP Equal Weight Index was

MLP Week Thoughts: Chesa-Peaking Negativity

14Feb
MLPs had a negative 10.2% total return week, the 6th worst week ever, but not quite as bad as the first week of December leading up to KMI’s dividend cut.  Over the past two weeks MLPs have dropped 14.4% and finished the week down 23.9% for the year, including distributions outpacing oil’s price decline YTD. After 12 trading days without a 5%

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: Sentimental-Listless

11Jun
Another deflating week in MLP land, although MLPs outperformed oil prices and finished the week on a positive note with some relief Friday.  MLPs finished down 1.1% overall, in-line with utilities.  MLPs have declined 1%+ for 3 straight weeks, which hasn’t happened since November 2015 when KMI’s leverage and dividend cut drama escalated.  On the

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