Month: July 2018

The MLP Index produced 6.6% total return in July, the best July since 2010.  Looking ahead, August has been negative in each of the last 3 years and 7 of the last 9.  For the MLP rally to continue, the stocks would need to counter these seasonal headwinds that typically restrain MLP buying late in the summer.

Midstream outpaced the broad market and posted a fourth straight positive week.  MLPs again led the way, with a 1.5% gain.  The MLP Index is up 4.7% over those 4 weeks.  The Alerian Midstream Energy Index (AMNA), the most inclusive midstream index, was up 0.9% and has posted a year over year total return of 0.1%, slightly ahead the Alerian MLP Index.

Midstream stocks, led by MLPs, were positive for a third straight week.   After starting slow, things turned around Wednesday when oil reversed intra-day.  Then Thursday, the MLP Index rallied 2.5% after the final FERC ruling generated big excitement around some beaten down FERC-impacted and some additional excitement for MLPs broadly.

Midstream had a decent week, highlighted by the MLP Index outperforming U.S. and Canadian midstream corporations and breaking back into positive total return territory year to date.  MLPs traded up despite weakness in commodity prices and in utilities.  On Monday, in particular, MLP action was encouraging when the UTY was drubbed for a 3% loss and the MLP Index was positive.

In a rising broad market and a mixed commodity price backdrop, midstream stocks traded up but lagged the S&P 500 and utilities this week.  Recent midstream corporation and utility outperformance has helped the Alerian Energy Infrastructure Index (AMEI) cut into the YTD lead the Alerian MLP Index has maintained since the MLP spike in January.