Archive

Week Thoughts: MLPs Ride Oil Squeeze Higher

30Aug
MLPs plumbed new depths on Monday with a 3.8% decline, but then rallied Tuesday with the market and sustained the rally as oil prices spiked higher later in the week, finishing up 5.1% overall.  Oil prices settled above $45/bbl, a 12% increase over last Friday’s price.  MLPs outperformed the S&P 500 and way outperformed utilities as the oil price

Oil Exports: Impact on MLPs

27Aug
Heading towards the end of the week and news is turning positive. MLPs are gaining traction and oil prices are heading higher. In advance of the weekly post, I wanted to share a paper we recently published that discusses U.S. oil exports, particularly exploring the market potential for U.S. oil exports and the impact of oil exports on midstream MLPs in the

MLP Week Thoughts: Triage Fatigue

23Aug
MLPs had another rough week, with the Alerian MLP Index falling 5.2%, erasing last week’s 5.2% bounce.  Smaller MLPs underperformed (equal weight Alerian -6.0%).  In addition to the continuation of oil (down 5.3% to fresh lows) and NGL routs, MLPs were not helped by very weak broader stock market action.  The S&P 500 dropped 5.8%, which means MLPs

Week Thoughts: MLP Sponsors Answer the Call

15Aug
With 2Q MLP earnings season finally in the books, and with all the negative MLP-specific news priced in for another 90 days, MLPs traded much better this week, even with another leg down in oil prices to fresh lows.  The Alerian MLP Index (AMZ) increased 5.2% including distributions.  Volatility continued, as daily action alternated between positive and

Week Thoughts: MLP Bets Off

09Aug
Any pieces picked up with last week’s MLP rally crumbled into dust this week, on further weakness in oil and tempered guidance from earnings releases, exacerbated by bearish industry comments from PAA’s CEO Greg Armstrong.  Those comments sent the MLP Index into a 5%+ tailspin Wednesday, the 3rd 5%+ down day since (and including) November 28th.  When

MLP Week Thoughts: Picking Up the Pieces

02Aug
MLPs bounced back this week, with the Alerian MLP Index gaining 3.3% including distributions.  From last Thursday’s close to Wednesday, the index was up 6.7% over 4 straight positive days, before settling down with two 1%+ decline days to close the week.  Stabilizing oil prices helped MLPs continue the rally from last Friday, but then faded as ex-dates