Archive

Week Thoughts: MLPs Under Water

31May
MLPs underperformed the S&P 500, utilities and oil prices this week, in a sustained hangover that coincided with incessant rainfall and flooding across Texas, making it an all-around gloomy post- MLP conference hangover week.  The Alerian MLP Index (AMZ) declined 2.7% this week, falling 3 of the 4 trading days.  Large cap MLPs underperformed

Week Thoughts: MLPs Pause for Annual Beauty Contest

25May
MLPs were flattish this week, along with the stock market, oil prices, and interest rates. Natural gas prices and propane declined sharply, however, which helped upstream MLPs and small caps under-perform. There were no significant midstream announcements this week, but plenty among upstream MLP activity, including equity and more consolidation. The Last

MLP Week Thoughts: Incentive Compensation

17May
MLPs bounced back this week based on the Alerian MLP Index, which was up 1.3%, but a significant portion of those gains were from WPZ (+20.5%).  The equal-weight version was still positive, but only +0.2%, because it is balanced by weak performing upstream MLPs.  Natural gas prices showed strength, but every other macro factor was roughly flat

WPZ: Back to the Future

17May
I hit the road with the Williams Companies (WMB) management team in August 2005 on the IPO roadshow for Williams Partners (WPZ), an MLP with a plan to start small and grow by acquiring assets from its parent company (see original prospectus here).  WPZ was one of the first MLPs to explicitly launch with a long-term drop-down strategy, and the first to

Week Thoughts: MLPs Stifled by Equity, Earnings and Taxes

10May
MLPs crapped out this week, ending their positive streak at 7 weeks.  The Alerian MLP Index was down 2.4%, while the more smaller-cap weighted equal weight version was down even more (3.9%).  MLPs slipped back into negative territory for the year overall.  Heavy equity issuance, some weaker earnings releases, IRS private letter ruling noise,

Week Thoughts: Money May-Weather for MLPs?

03May
MLPs marched higher again this week, running their winning streak to 7 weeks.  Coincidentally, oil prices were up for a 7th straight week as well.  This week, however, natural gas prices had a significant bounce as well.  The rate on the US 10-year rose by 20 basis points week over week, pushing down other yield-based equities.  Given