MLPs were down in an up week for stocks and for commodities. Natural gas and NGLs were up sharply, while oil languished, down 0.5% for the week. The equity overhang I discussed last week continues to build for MLPs. With the exception of the KMP and KMI bought / block trade deals a few weeks ago, its been a month since there’s been a marketed equity offering in the MLP space.
I’ll keep this post short, because there were no major transactions this week, and I’m hoping to use these quiet weeks to make some progress on my to-do list.
The only news recently has been a couple of positives on the regulatory side of things;
The only other press release of note this week was the announcement that AMJ will be capped after it issued another $500mm in notes. At current price, that’s around $4.7 billion. Once AMJ gets capped, it will be interesting to see how the secondary market reacts and see if the tracking gets out of whack as a result (press release).
Winners & Losers
Propane and gathering & processing MLPs filled out the top five MLPs, with higher natural gas, ethane and propane prices likely driving the bus. On the red side of the ledger, Niska Gas Storage (NKA) was the biggest loser this week, and dropped out of its top spot for the year (see below). ARLP continues to get beaten down.
Year to date, coal remains in the dog house, while the top five are all a bit unusual in their assets (CQP, CPLP, NKA), location (BIP) or origin (ARP).
For the year, investors much prefer other investments to MLPs. Falling natural gas and oil prices haven’t helped.
That’s it for this week. If you are lucky enough to have kids, like me, then have a Happy Father’s Day.
In honor of this news-light week, enjoy the music video below from the mid-90s by LoneStar…