Midstream and Upstream MLP Gainers and Losers on September 10
Top losers
In the last part of this series, we saw the top five midstream MLP gainers on September 10. In this part, we’ll discuss the top five midstream MLP losers on the same day.
American Midstream Partners
American Midstream Partners (AMID) was the top loser among midstream MLPs at the end of trading on Thursday, September 10. Its shares fell 16.09% yesterday after an announcement on the pricing of the common unit offering. American Midstream Partners is having a public unit offering of 7,500,000 common units. According to the company, “The Partnership also granted the underwriters a 30-day option to purchase up to 1,125,000 additional common units.” The proceeds from the offering will be used to fund the “Delta House Acquisition” announced earlier. Yesterday’s sell-off can be attributed to investor worries regarding:
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The offering has a dilutive effect.
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Uncertainty surrounding the Delta House Acquisition deal announced during August 2015. According to the company press release, “In the event the Partnership does not consummate the Delta House Acquisition, the partnership will use the net proceeds of this offering to repay a portion of the outstanding borrowings under its credit facility and for general partnership purposes.” The deal is expected to drive a 5% rise in American Midstream Partners’ distributions.
Crestwood Midstream Partners
Crestwood Midstream Partners (CMLP) is next on our list of the top five midstream MLP losers on September 10. It fell 5.95% yesterday. Crestwood Midstream Partners has lost 54.15% of its market value since the beginning of this year. Its poor market performance can be attributed to lower NGL (natural gas liquid) and crude oil prices affecting its crude oil and NGL services segment. For an in-depth analysis of Crestwood Midstream’s recent operating and market performance, read Crestwood Midstream’s 2Q15 Results: Highlights for Investors.
Other losers
Southcross Energy Partners (SXE), Tallgrass Energy Partners (TEP), and Summit Midstream Partners (SMLP) were among the top five midstream MLP losers on Thursday, September 10. They fell 4.44%, 3.20%, and 2.97% in the last trading session, respectively. They have returned -62.14%, 0.22%, and -40.63% YTD.
The Alerian MLP ETF (AMLP) and the UBS ETRACS Alerian MLP Infrastructure ETN (MLPI) have returned -19.18% and -24.01% YTD. Crestwood Midstream accounts for 0.96% of AMLP.
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