DCP Midstream Partners: Top Midstream Gainer on July 21
Midstream and Upstream MLP Gainers and Losers on Tuesday, July 21
Top gainers
DCP Midstream Partners (DPM) was the top gainer among midstream MLPs at the end of trading on Tuesday, July 21. It rose 3.21% yesterday.
DCP Midstream Partners
DCP Midstream Partners has lost almost one-third of its market value YTD (year-to-date), mainly due to falling NGL (natural gas liquid) prices and rating downgrades by major investment banks. NGL prices continue to fall on a combination of strong supplies and weaker demand for propane and butane during warmer weather conditions. NGL prices are expected to stay low until at least 4Q15. For a detailed analysis of DCP Midstream’s recent performance, read DCP Midstream 1Q15 Earnings: Distribution Should Stay Flat in 2015.
Phillips 66 Partners
Phillips 66 Partners (PSXP) is next on our list of the top midstream MLP gainers. Phillips 66 Partners ended its losing streak when its stock rose 2.95% yesterday. Until yesterday, the stock had been battered since the beginning of last week due to negative sentiment surrounding energy logistics businesses’ growth prospects. Phillips 66 Partners has returned -15.55% YTD. It was formed by Phillips 66 (PSX) to own and operate crude oil and refined product pipelines and other midstream assets.
Other gainers
The next three stocks on the list of the top five midstream MLP gainers on July 21 are Shell Midstream Partners (SHLX), Spectra Energy Partners (SEP), and TC Pipelines (TCP). They rose 2.27%, 1.75%, and 1.56%, respectively. These three stock have returned 3.42%, -19.41%, and -22.07% YTD.
Shell Midstream Partners’ solid market performance can be attributed to the company’s relatively low commodity exposed cash flows—compared to other MLP counterparts. Shell Midstream Partners was formed by Royal Dutch Shell (RDS.A). Its assets include crude oil and refined product pipelines. It started trading in October 2014. Since then, the stock has returned 23.32%.
The Alerian MLP ETF (AMLP) remain unchanged by the end of trading yesterday. Together, DCP Midstream Partners, Shell Midstream Partners, Spectra Energy Partners, and TC Pipelines account for 8.13% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.60% on the same day.
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