Midstream and Upstream MLP Gainers and Losers on November 2
Top gainers
Midcoast Energy Partners (MEP) was the top gainer among midstream MLPs at the end of trading on Monday, November 2. Its winning streak continued with a single-day gain of 6.2% yesterday.
Midcoast Energy Partners
Midcoast Energy Partners rose 23.6% in the last four trading sessions. It rose 15.5% since its earnings announcement on October 29, 2015. In its 3Q15 earning release, Midcoast Energy Partners declared a cash distribution of $0.36 per unit. This represents 5.9% YoY (year-over-year) rise compared to 3Q14. It’s a 1.4% sequential rise compared to 2Q15.
According to the earnings press release for 3Q15, “Enbridge Energy Partners, L.P. (“EEP”), EEP will enhance MEP’s ability to deliver distribution growth through 2017. In July, EEP expressed its intent to provide its next drop-down proposal to MEP in 2016 with terms that are expected to enhance value to MEP unitholders. Collectively, these actions position the Partnership to respond as commodity market fundamentals improve, while in the interim delivering 5 percent annual distribution growth and maintaining 1.0x distribution coverage through 2017.”
MPLX LP
MPLX LP (MPLX) is next on our list of the top midstream MLP gainers. It rose 6.1% yesterday. It rose 11.6% since its earnings announcement on October 29, 2015. According to the earnings press release for 3Q15, MLPX expects the merger transaction with MarkWest Energy Partners (MWE) to close this year. MPLX and MarkWest Energy generally move in tandem since their merger announcement. MarkWest Energy rose 1.9% yesterday. Traders take advantage of any discrepancy in the swap ratio dictated prices. For an in-depth analysis of the MarkWest Energy-MPLX merger, read Key for Investors: Analyzing the MarkWest-MPLX Merger.
Other gainers
The next three MLPs on the list of the top five midstream MLP gainers on November 2 are American Midstream Partners (AMID), Columbia Pipeline Partners (CPPL), and Summit Midstream Partners (SMLP). They rose 4%, 3.8%, and 3.6%, respectively. American Midstream Partners and Summit Midstream Partners have returned -40.1% and -49% YTD (year-to-date), respectively. Columbia Pipeline Partners started trading in February 2015. Since then, the stock has returned -51.3%.
The Alerian MLP ETF (AMLP) is comprised of 23 midstream MLPs. It rose 1.3% yesterday. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 2.5% on the same day.
Continue to Next Part
Browse this series on Market Realist: