Spectra Energy Partners Has Fallen 22% Year-to-Date in 2015
SEP trades above 50-day moving average
Spectra Energy Partners (SEP) is currently trading 5% above its 50-day moving average and 6% below its 200-day moving average. The stock crossed its 50-day moving average in a bullish manner on December 21, 2015, when the lifting of a ban on US oil exports sent most energy MLPs up. The stock has continued to be above its 50-day moving average since then, following a small recovery in crude oil prices.
Spectra Energy Partners also crossed above its 50-day moving average on November 4, 2015, the day it announced its 3Q15 results. SEP’s distributable cash-flows for the quarter were up 9.3% year-over-year. It increased its quarterly distributions by 2% over the previous quarter.
The above graph shows Spectra Energy Partners’ stock price along with its 50-day and 200-day moving averages. SEP traded above its 50-day moving average for most of the days between the last week of July and the first week of September. It announced its second quarter results and a 2.1% increase in 2Q15 distributions during this period.
Spectra Energy Partners had been trading below its 50-day moving average since May when it fell following the path of crude oil prices.
SEP’s year-to-date fall
Spectra Energy Partners’ stock has fallen 22% since the start of 2015. It outperformed other midstream energy companies such as ONEOK (OKE), Enbridge Energy Partners (EEP), and Energy Transfer Partners (ETP), which fell 52%, 44%, and 49%, respectively, in the same period. The Alerian MLP ETF (AMLP), which holds top infrastructure MLPs, fell 34%.
In this series, we’ll analyze Spectra Energy Partners’ price targets, the performance of SEP’s various segments, its leverage, distributable cash flows, capital expenditure, and distribution growth. We’ll also analyze its valuation relative to its historical valuation and to those of its peers. Finally, we’ll analyze the key drivers of SEP’s stock price.
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