Midstream and Upstream MLP Gainers and Losers on September 10
United States Oil Fund
In the last two parts in this series, we analyzed the best and worst performing midstream MLPs on Thursday, September 10. To put those movements into context, we’ll analyze the performance of energy-related ETFs and upstream MLPs on the same day.
The United States Oil Fund (USO) rose 2.89% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. In yesterday’s trade, WTI (West Texas Intermediate) crude oil for October delivery settled $1.77 higher, or 4%, at $45.92 per barrel due to strong US demand for gasoline. However, inventory data showed that US crude inventories rose. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.86%.
Upstream MLPs
Most upstream MLPs, that have already lost significant market value since the rout in the energy prices, rose yesterday. They tracked the rise in crude oil prices. The top upstream MLP gainers include Legacy Reserves (LGCY), EV Energy Partners (EVEP), Vanguard Natural Resources (VNR), and BreitBurn Energy Partners (BBEP). They rose 2.54%, 2.50%, 1.11%, and 0.37%, respectively. For an in-depth analysis on the recent operating and market performance of the four largest upstream MLPs, read Tough Times: How 4 Upstream Energy MLPs Are Faring So Far.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. The United States Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It rose 0.80%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 23 midstream energy MLPs. It fell 0.07% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.61 percentage points and 0.93 percentage points in yesterday’s trade, respectively. SPY tracks the broader S&P 500 Index. It rose 0.54% yesterday. AMLP has returned -19.24% YTD (year-to-date), while SPY fell 4.71% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.
Browse this series on Market Realist: