MLPs Overshadowed by Jobs, Stocks and Football

Source: Hinds Howard, MLP HINDSight (2/5/12)

"This week's underperformance was to be expected, as many MLPs passed through their ex-dates. Data still points in the right direction."

MLPs under-performed stocks this week, an ongoing trend early in 2012. MLPs were up 0.6%, compared with 2.2% for the S&P 500. This week’s under-performance was to expected, as like last week, many MLPs passed through their ex-dates this week. More on how MLPs tend to do after ex-dates below. Surprise positive economic datapoints dominated the news and led stocks higher. January payroll report was the big surprise. The report, released on Friday reported 243K new jobs and an unemployment rate down to 8.3%. Also this week, January vehicle sales were reported at 14.1M, best since August 2009 (heart of cash for clunkers). Data seems to be pointing in the right direction, and as Josh Brown writes this weekend, attitudes will need to be adjusted. howard0207_1

Despite all this good news, interest rates remain very low, the 10 year treasuries remains under 2.0%, a paradox of sorts in the face of such large positive swings for stocks since September 30. Oil and gas prices were both down as well, even as the U.S. Dollar lost ground to the Euro this week. So, it seems like all cash flowed into stocks today and away from almost everything else.

As I discussed in my Winners and Losers post earlier this week, there is now and has been for at least the last 18 months, dichotomy between haves and have nots in the MLP sector continues to grow. This week, that was epitomized by the strength in earnings from Enterprise Products ($EPD) and Markwest ($MWE) compared with weakness from earnings of Inergy ($NRGY), Niska Gas Storage ($NKA) and Suburban Propane ($SPH). EPD is so well positioned in the active shale plays that it is able to pick and choose high return crude and NGL projects, as highlighted by its blowout quarterly earnings. Markwest announced expansions to its processing facilities in the Marcellus and Utica. Whereas NRGY, SPH and NKA are struggling just to keep their heads above water.

Also, there were 2 equity offerings this week, $150M primary issuance from Breitburn and an untimely Chesapeake Midstream secondary sale of units owned by Global Infrastructure Partners. CHKM had traded poorly for the last week prior to the deal following the announcement from CHK that it would curtail drilling in areas where CHKM has assets: Barnett and Haynesville shales.

In SEC filing news, there was a new initial S-1 for an MLP filed this week: Foresight Energy Partners. Foresight is a coal operator backed by Carlyle. There have been no other S-1 filings or updates to S-1's this year to date. Also, KMP updated its shelf registration to add an additional $600M, for a total of $1.2B.

Expect MLPs to outperform this week, as some of the stock market euphoria fades and MLPs catch up with ex-dates now finished. Also, expect to read a piece from me about how certain MLPs typically do after ex-dates.

Hinds Howard, MLP HINDSight

NGL Energy Shares Rise 21% as It Seeks to Raise $2.05 Billion from Senior Secured Note Offering
Source: Streetwise Reports (01/21/2021)

Shares of NGL Energy Partners LP traded higher after the firm made a series of announcements over the past three days regarding an update on financial operations, a settlement with a customer in bankruptcy, a quarterly Class D unit distribution and a $2.05 billion senior secured debt offering.

Western Midstream Posts 99% YoY Increase in Q3 Earnings, Announces $250 Million Buyback Program
Source: Streetwise Reports (11/10/2020)

Shares of Western Midstream Partners traded 23% higher after the company reported Q3/20 financial results that included a nearly 100% growth in Net income. The firm also provided FY/21 guidance and announced a $250 million buyback program.

Altus Midstream Shares Flow Higher on Q3 Earnings and Plans for $1.50/Share Dividend in Q1/21
Source: Streetwise Reports (11/05/2020)

Shares of Altus Midstream Co. traded 170% higher after the firm reported Q3/20 financial results and announced plans to pay a quarterly dividend of $1.50 per share beginning in March 2021.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

NGL Energy Partners Shares Rise 80% as the Firm Confirms 2020 Guidance
Source: Streetwise Reports (03/19/2020)

Shares of NGL Energy Partners traded higher after the company confirmed its fiscal 2020 EBITDA guidance and provided an update on current operations and capital expenditure reductions.

Tallgrass Energy Shares Rise 20% on Blackstone Partners Acquisition Deal
Source: Streetwise Reports (12/17/2019)

Shares of Tallgrass Energy LP traded 20% higher after the firm advised that it entered into a definitive merger agreement with Blackstone Infrastructure Partners to acquire all of the company's publicly held outstanding class A shares for $22.45 per share in cash.

Analyst: Outlook Positive for 'Water-Driven Turnaround Story'
Source: Streetwise Reports (01/04/2019)

This master limited partnership's presentation to analysts provided Raymond James with multiple reasons for long-term investment.

Simplification: A Positive Change for MLP Industry, Investors
Source: Adam Karpf for The Energy Report (05/30/2017)

The master limited partnership (MLP) industry, focused on energy infrastructure, is in the process of a major transformation known as "simplification," where limited partners have merged with or acquired the interests of the general partner. Adam Karpf, portfolio manager for MLP strategies at CIBC Atlantic Trust Private Wealth Management, discusses the trend toward simplification and the benefits for management teams and investors.

A Year of Tips for Winning the Natural Resource Investment War
Source: The Energy Report Staff (12/29/2015)

Energy investors are no strangers to boom-and-bust cycles. In fact, a number of the experts interviewed by The Energy Report in 2015 took a certain amount of glee in the opportunities they knew would open up in low-price markets for oil and gas, uranium and lithium.

Three Upstream MLPs with the Discipline to Succeed in the Coming Recovery: RBC Analyst John Ragozzino
Source: JT Long of The Energy Report (04/29/2015)

RBC's John Ragozzino is anticipating an oil price recovery that could bode well for upstream master limited partnerships, and knows which had the strength to hedge at the right times and which are liquid enough to take advantage of growth opportunities that could be right around the corner.