Archive

Week Thoughts: Safety in MLPs

29Mar
MLPs finished positive for the second straight week, the first time in 2015 MLPs have been positive for two consecutive weeks.  Oil prices increased, helping the Alerian MLP Index (AMZ) finish up 0.3% this week.  Large capitalization MLPs traded better on average than smaller MLPs this week.  MLPs outperformed both utilities (-2.5%) and the

Week Thoughts: MLP Spring Breakup

22Mar
MLPs stopped issuing equity, the Dollar faltered, oil and gas prices bounced, interest rates collapsed, the heavens parted…and that’s all it took for MLPs to finally trade up this week.  The Alerian MLP Index rose 1.7%, well ahead of the Alerian MLP Equal Weight version, indicating strength in larger MLPs, something we haven’t seen much of this

Week Thoughts: MLPs Drowning in Oil & Equity

14Mar
MLPs sold off sharply this week, trading down 4 out of the 5 days.  The Alerian MLP Index (AMZ) closed down 4.3% for the week, and is down 8.1% over the last 3 weeks.  Lower oil prices were the primary driver of the sell off this week, and despite a much lower inventory build this week, oil storage building is the primary concern within the sector

MLP Week Thoughts: Supply and Supply

07Mar
MLPs were volatile this week, trading in a different direction each of the five trading days.  Down Monday, up Tuesday, down Wednesday, up Thursday, and down Friday.  The price action reflects commodity price uncertainty that is leading to growth capex uncertainty.  Growth capex has been the principal driver of distribution growth the last few years

MLP Week Thoughts: Toddling Through the Jungle

01Mar
After a positive week last week, MLPs declined 1.4% this week.  The MLP Index has been unable to string together two consecutive positive weeks in more than 2 months.  The market was (understandably) unable to soak up $1.7bn of new MLP equity this week without MLP prices declining.  It didn’t help that PAA, which represents 7.5% of the index, was down