Month: September 2018

As if stuck on repeat, oil and natural gas were up, midstream was down this week. The S&P 500 paused its upward trajectory, and utilities were negative for a second straight week.  Income securities had a rough month generally, and it feels like midstream is being painted with the “income stock” brush rather than the “energy stock” brush. 

Another up and down week in midstream, but this time midstream corporations were up and MLPs were down, although the move was small in both directions. Midstream outperformed utilities, which sold off on higher interest rates.  The S&P 500 beat both midstream and utilities.

Even with a full complement of tailwinds at play this week, midstream trading was choppy and the week ended with minimal gains.  Those tailwinds include: strong broad stock market (S&P 500 up for 5 straight days), oil price gains, spiking NGL prices, and wide location differentials for oil and NGLs.  The big tailwind that’s missing: investor enthusiasm, interest or even acknowledgement.

It was a rough start to the school year all over the market.  MLPs and U.S. midstream corporations outperformed a weak broad market and held up much better than energy stocks.  But after the last few weeks, languishing midstream stock performance was still a disappointment.  The broad midstream index (AMNA) was in-line with the S&P 500, dragged down by heavy Canadian exposure that underperformed.

Midstream had a rough week, the worst since late March and 4th worst so far this year.  Oil prices rallied for a second straight week, NGL prices were sharply higher, the broad stock market was higher again, but midstream and MLPs lagged badly.