Archive

Week Thoughts: MLPs on Mute

30Jul
Oil was up all week long, MLPs were flattish all week long.  The MLP Index finished exactly where it started on a price basis, but distributions added 0.8% to tilt total return slightly positive. With a benign set of results and robust commodity backdrop, muted MLP price action this week is discouraging.  There are several possible reasons for

Week Thoughts: Excellent Adventure for KMI, Bogus Journey for MLPs

23Jul
Recent MLP tailwinds (oil prices, lack of equity issuance) reversed this week, pumping the brakes with a 1.9% decline after 3 weeks of outperformance.  The move this week reversed last week’s 1.9% gains and mirrored the drop in oil prices. NGL prices were up and interest rates declined, but otherwise prime conditions from last week were not in place this

Week Thoughts: Prime Conditions Prolong MLP Primacy

16Jul
The MLP Index finished the week decisively above 300, up 9.9% from its recent (6/21) low, after a 1.9% week that included a furious late Friday ramp.  Oil prices rose each day of the week, including 4 straight 1%+ days to finish the week.  MLPs resisted rallying for most of the week, but eventually relented. Just when sentiment was at its worst and

Week Thoughts: Oil Takes Another Licking, MLPs Keep on Ticking

09Jul
MLPs reversed intra-day to finish positive Friday, which when combined with outsized gains Monday, was enough to finish the week slightly positive.  That makes two straight positive weeks and two straight weeks of outperforming the S&P 500 and utilities.    MLP capital markets activity has been negligible for over a month now, which is perhaps a

Week Thoughts: Seeking a Better Half

02Jul
Sweet relief came this week in the form of 7% higher oil prices that helped MLPs break a grueling 5 week losing streak.  At 4.2%, it was the second best week of the year, a strong finish to a disappointing first half for MLPs.  MLPs have traded up 7% since their 6/21 52-week low.  Rising interest rates was problematic for utilities and the S&P 500