Short week and the Masters on TV equals short Week Thoughts post, with Winners and Losers charts at the end, so keep scrolling. Here goes…
Fears that the Fed may not keep the stimulus flowing, rising government borrowing costs in Spain and further signs of weak growth in Europe weighed on the market this week. But that didn’t stop AAPL from closing the week at a fresh all time high. MLPs fared well Monday and Tuesday, but sold off with the market Wednesday and both the S&P 500 and MLPs finished flattish Thursday.
MLPs finished the week flat, while the S&P 500 finished down 0.7% and energy stocks (XLE) finished down more than 1.5%, on flat oil and weaker natural gas prices this week. S&P 500 is still way out in front of everything else, and gold is doing well despite a big drop this week.
News of the (MLP) World
There were two E&P joint ventures announced this week, continuing the torrid pace of E&P acquisitions so far this year. I expect E&P MLP M&A activity to continue to be high as well-capitalized E&P MLPs will have the ability to pick up properties from struggling public corporations and private companies whose borrowing bases get reset to lower natural gas price decks, which continue to get lower as natural gas storage levels are 61% higher than their 5 year average. Speaking of E&P Acquisitions…
Linn Energy JV – LINE announced $400 million joint venture with Anadarko in Wyoming (press release) (no position)
Atlas Resource Partners JV – Announced 50% JV in Mississippi Lime Play for $18 million (press release) (no position)
Williams Partners Equity Offering – WPZ priced $545 million equity offering (press release) (no position)
ONEOK Partners Bakken Investment Grows – OKS to spend an additional $140 to $160 million in Bakken (press release) (long OKS)
Plains All American expects to exceed guidance (press release) (no position)
Sempra Energy might form MLP – SRE indicated at an analyst presentation that they are strongly considering the formation of an MLP, potentially to house its eventual LNG export terminal and its ownership stake in the Rockies Express Pipeline.
Winners and Losers
No surprises this week, coal, propane and commodity sensitive gathering and processing MLPs still struggling, with the exception of PVR, which was up 4.2%.
No change in the bottom 5 for the year this week, not much change at the top either.
Disclosure: The information in this article is not meant to be financial advice, I am not your financial advisor and I am posting my comments for informational purposes only. Long OKS.