Energy Transfer Equity Keeps Falling on $53 Billion Merger Rejection
(Continued from Prior Part)
Major losers for the day
In the previous article of this series, we saw the top five midstream MLP gainers on Tuesday, June 23. In this article, we’ll discuss the top five midstream losers on the same day.
Energy Transfer Equity
Energy Transfer Equity (ETE) continued to fall for a second day following the rejection of its $53.1 billion merger proposal with Williams Companies (WMB). ETE had made multiple offers to Williams over almost six months, including the latest offer sent to Williams’ Board of Directors on June 18, 2015. ETE fell 1.5% on Tuesday after losing 4.9% the day before.
ETE’s limited partner, Energy Transfer Partners (ETP), gained 0.3% yesterday. ETE’s earnings depend on distributions from ETP. For a detailed overview of the Energy Transfer group’s current organizational structure, check-out our series Energy Transfer Partners Was One of the Strongest MLPs in 2014.
EnLink Midstream Partners
Next in out list of midstream losers is EnLink Midstream Partners (ENLK). ENLK stock fell 1.5% yesterday. The stock came closer to its 52-week low of $22.70. ENLK has lost 16.4% of its market value since the beginning of 2015.
Other midstream losers
Other midstream losers on June 23 include Genesis Energy (GEL), Magellan Midstream Partners (MMP), and Enbridge Energy Partners (EEP). GEL, MMP, and EEP lost 1.2%, 0.7%, and 0.6% in the last trading session, respectively. GEL, MMP, and EEP have returned 6.5%, -4.9%, and -8.2% year-to-date, respectively.
The Alerian MLP ETF (AMLP), which comprises 25 midstream MLPs, has returned -8.1% year-to-date. GEL, MMP, EEP, and ENLK together make up ~17.9% of AMLP. For context, consider that the upstream energy company–heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned 2.6% year-to-date.
For more company and industry indicator series on master limited partnerships, visit our Master Limited Partnerships page.
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