Midstream and Upstream MLP Gainers and Losers on September 10
Top gainers
Boardwalk Pipeline Partners (BWP) was the top gainer among midstream MLPs at the end of trading on Thursday, September 10. It rose 2.83% yesterday.
Boardwalk Pipeline Partners
Boardwalk Pipeline Partners has lost over one-fifth of its equity value since the beginning of this year. It has returned -24.25% YTD (year-to-date). It mainly provides natural gas gathering, processing, transportation, and storage services.
Transmontaigne Partners
Transmontaigne Partners (TLP) is next on our list of the top midstream MLP gainers. It rose 2.48% yesterday. With yesterday’s rise, its YTD returns improved to 0.92%. Transmontaigne Partners has rallied 6% in the last five trading sessions. The partnership mainly provides crude oil and refined products terminaling services.
Other gainers
The next three MLPs on the list of the top five midstream MLP gainers on September 10 are Genesis Energy (GEL), Williams Partners (WPZ), and ONEOK Partners (OKS). They rose 2.46%, 2.36%, and 2.04%, respectively. These three MLPs have returned 3.21%, -18.41%, and -16.58% YTD.
Genesis Energy has performed well YTD considering the recent turmoil in the energy markets. It has a diverse portfolio of midstream assets including refinery-related plants, pipelines, storage terminals, and trucking operations.
In contrast, ONEOK Partners’ poor market performance can be attributed to its flat distributions and weak coverage ratio. In the previous month, it agreed to sell 24.9 million common units to raise $750 million. ONEOK Partners “expects to obtain a greater than 1.0 times coverage of cash distributions in 2016” through investment in high yielding growth capital projects. For more details, read Analyzing ONEOK Partners’ 2Q15 Earnings and Recent Unit Sale.
The Alerian MLP ETF (AMLP) and the UBS ETRACS Alerian MLP Infrastructure ETN (MLPI) fell 0.07% and 0.16%, respectively. Together, Genesis Energy, Williams Partners, and ONEOK Partners account for 15.34% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.86% on the same day.
Browse this series on Market Realist: