This website uses cookies to improve the user experience. By using our website you consent in accordance with our Cookie Policy. Read More

ACCEPT
Triangles background
Back to Insights

January 11, 2013

Viewed 1252 times

Week Thoughts: Rally Continues Amid MLP Press Release Party

MLPs had another strong week, with the Alerian MLP Index rising 2.1%, compared with a 0.4% increase in the S&P 500.  So far in 2013, the MLP Index is up 7 out of 8 days and a total of 7.4%. Oil and gas weren’t big movers, but NGLs were down sharply.  So, while MLPs continue to feel the effects of beginning of the year fund flows and yield chasers, ethane and propane continue to suffer from an over-supply or under-demand, depending on your perspective.

Weekly Review_1-11-13

This continued MLP strength is in the face of 3 follow-on offering totalling around $600mm in gross proceeds that priced this week, and nearly $1.0bn in MLP IPOs that are on the road, not to mention a slew of M&A and growth projects that were announced this week that will mean more capital funding in the future.  I don’t remember seeing 3 MLP IPOs on the road at the same time, certainly not in January, given that MLP IPO market is generally slow to get started each year.
GLP went from biggest underperformer last week to biggest performer this week, up 11.6% on its announced 5 year agreement with Phillips 66 for use of some of its Bakken assets.   TLLP and CLMT were down on their equity deals.

Top5Bottom5MLPs_1-11

Small-cap, high beta MLPs are off to a very fast start in the first 8 trading days of the year, with last year’s biggest loser, OXF, leading the sector.  TLLP leads the losers, but don’t expect that to last very long.

Top5Bottom5MLPs_1-11_13_YTD

MLPs are out to an early lead on basically everything this year.  Variable distribution MLPs have been mixed thus far, with strength in fertilizer MLPs balanced by weakness in the two variable refinery MLPs.

MLPs_World_1-11_13_YTD

News of the (MLP) World
News-of-the-World
Equity

  • Crosstex Energy (XTEX) announces pricing of 7.5mm unit offering at $15.15/unit and 2.7mm unit private placement, raising $152.9mm in total gross proceeds
  • Tesoro Logistics (TLLP) announces pricing of 8.5mm common unit offering at $41.70/unit, raising $354.5mm in gross proceeds
  • Calumet Specialty Products (CLMT) announces pricing of 5.0mm common unit offering at $31.81/unit, raising $159.1mm in gross proceeds
  • MLP IPOs Launched This Week:
    • CVR Refining (CVRR): 18.9% yield, $500mm gross proceeds expected
    • USA Compression (USAC): 8.5% yield, $200mm gross proceeds exp.
    • Suncoke Energy (SXCP): 8.25% yield, $270mm gross proceeds exp.

Debt – big week for debt, with $1.7bn pricing at some very nice coupon rates.

  • Markwest Energy (MWE) announces pricing of $1.0bn of 4.5% senior unsecured notes due 2023 at par
  • Sunoco Logistics (SXL) announces pricing of $350mm of 3.45% senior notes due 2023 and $350mm of 4.95% senior notes due 2043

M&A / Growth Projects

  • Rose Rock Midstream (RRMS) announces acquisition of 17% effective interest in White Cliffs Pipeline from Semgroup for $273.9mm
  • Summit Midstream (SMLP) announces acquisition of Bear Tracker Energy, LLC for $513mm from GSO Capital Partners
  • Crestwood Midstream (CMLP) announces acquisition of the remaining 65% interest in Crestwood Marcellus Midstream for $258mm
  • Targa Resources (NGLS) acquires $25mm of Houston Ship Channel property for development of terminal/propane export facilities
  • Global (GLP) announces 5-year agreement with Phillips 66 to use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken to the Bayway refinery in New Jersey
  • NGL Energy (NGL) to acquire Third Coast Towing, LLC for $43mm, partially financed with NGL units
  • Capital Products (CPLP) announces acquisition of two 8,000 TEU container vessels, the sale of two VLCC tankers and the extension of the M/T Arionas time charter

Distribution Announcements:

  • PAA: $0.5625, +3.7% quarter over quarter
  • GEL: $0.485, +2.6%
  • PNG: $0.3575, flat
  • CPNO: $0.575, flat

That’s all for this week…GO PATS!

RELATED CONTENT
No posts matching your criteria
MLPguy Post
Final K-1: MLPguy Transition to New Era Starting this week, you will find my usual weekly updates on the midstream / MLP sector at mlpguy.substack.com.
MLPguy Post
Week Thoughts: Midstream Rides Market Jet Stream Higher Midstream stocks took some lumps with earnings announcements, but strength in oil prices, energy stocks (S&P Energy +8.3%) and the S&P 500 was enough to carry midstream to a strong positive week.
MLPguy Post
Week Thoughts: Midstream Pumped, Market Dumped Midstream indexes followed the S&P 500 lower this week, but MLPs outperformed factoring in distribution ex-dates from this week.
MLPguy Post
Week Thoughts: Midstream Better for Sale Midstream traded down each day this week and finished down 3-6% across the different indexes, reversing some of the early 2021 gains.
MLPguy Post
Week Thoughts: Midstream Re-Run Energy stocks, midstream stocks, and MLPs ran back last week’s action with another big week. Like last week, it was 4 straight green days followed by a weaker Friday.
MLPguy Post
Week Thoughts: Big Score for Midstream Midstream broke a 4-week losing streak and rang in the new year with a bang, rallying 7-8% across the midstream indexes. The big week was just the 3rd best week for MLPs since the vaccine news turned things around in early November.
MLPguy Post
Week Thoughts: Another Lost Week, Year for Midstream The short final week of the year was good for most stocks, but Midstream stocks were left out again. The S&P 500, utilities and infrastructure stocks traded up, along with oil and natural gas prices.
MLPguy Post
Week Thoughts: Midstream Santa Rally Melts Midstream underperformed the market for a third straight week after its massive bounce in November and early December. The group is clinging to a positive month of performance with just 4 more trading days left...
MLPguy Post
Week Thoughts: Midstream Checks Out Stocks, oil prices and natural gas prices were all up this week, but midstream stocks took a step back and appear to be coasting to the finish line for the year after the rush to re-position over the last few months.
MLPguy Post
Week Thoughts: Midstream Stalls at Altitude Midstream was mixed this week, with MLPs closing slightly lower after 4 very strong weeks of positive performance. Positive performance from some of the larger corporations in the U.S. and Canada helped the broader midstream indexes finish positive and keep pace with energy stocks...
MLPguy Post
Week Thoughts: Midstream Furious Finish Midstream had another huge week on still more follow-through of positive sentiment shift that’s occurred over the last 5 weeks as positive vaccine news sparked a rotation into value and energy stocks.
MLPguy Post
Midstream Movember: Updated Returns Through Month End Because the end of the month fell on a Monday, we felt it might be useful to post a wrap up on monthly performance for midstream, outside of the normal weekly cycle.
MLPguy Post
Week Thoughts: Midstream Parade Goes On Energy stocks (midstream included) continued their recent run of positive stock performance in this short week, helped by ongoing positive vaccine data points. It was the best Thanksgiving week return for midstream since 2008 (when MLPs were up 20%).
MLPguy Post
Week Thoughts: Midstream Hosts Another Large Gathering Another vaccine update, another rally for energy stocks and midstream stocks. Midstream was green all week until taking a breather Friday. Stocks and the infrastructure index were slightly negative, and utilities were hit hard.
MLPguy Post
Week Thoughts: Midstream Goes Green on Vaccine Energy stocks were buoyed by the big vaccine news Monday, and the gains held for the week overall. XOP spiked 20.4% this week, XLE was up 17.1%. Midstream wasn’t quite that strong but posted with historically significant gains Monday and for the week
MLPguy Post
Week Thoughts: Stocks Get Mandate, Midstream Flips Red The market (and midstream for most of the week) seemed to shrug off the ongoing presidential election malaise this week.
MLPguy Post
Week Thoughts: Pain Distributed Across Markets, Midstream Midstream and MLPs returned to earth this week, following lower oil prices and the market lower. Solid earnings reports from some of the larger names weren’t enough to offset macro headwinds and ET’s large distribution cut.
MLPguy Post
Week Thoughts: MLPs Ramp into Earnings MLPs resumed their October rebound this week with their best week since early August. Energy stocks outside of midstream also had a strong week on the back of merger mania in upstream with another E&P merger announced this week and others rumored.
MLPguy Post
Week Thoughts: Midstream Flattens Friday Midstream and MLPs looked to be coasting to a third straight week of solid gains, but a sharp selloff across energy stocks Friday erased the gains for the week.
MLPguy Post
Week Thoughts: Midstream Unchained, MLP Eruption MLPs followed up last week’s modest bounce with a huge week in a risk-on surge for equity markets, commodity markets and everything else this week.
MLPguy Post
Week Thoughts: Midstream Asymptomatic as Oil Declines The stock market broke its losing streak, and MLPs and U.S. midstream came along for the ride this week, bouncing slightly after a rough week, month, quarter and year. Weakness in Canadian midstream dragged down the AMNA Index.
MLPguy Post
Week Thoughts: Midstream Canceled Again The S&P 500 closed negative for a 4th straight week, while midstream had its worst week since June in what has been a brutal September so far.
MLPguy Post
Week Thoughts: Midstream Yield High, Interest Low Midstream stocks bounced back early in the week after two rough weeks, but then as the market rolled over later in the week, midstream and MLPs were dragged back down.
MLPguy Post
Week Thoughts: Another Setback Setback for Midstream Midstream struggled again this week, in a risk-off week for stocks and commodity prices.