Summit Midstream Fell as Energy Capital Looks for a Stake Sale
Best and Worst Midstream and Upstream MLPs on September 23
Worst performers
Summit Midstream Partners (SMLP) was the worst performer among midstream MLPs at the end of trading on Wednesday, September 23. It fell 18.17% yesterday. Its private equity sponsor, Energy Capital Partners, announced that it’s looking for buyers for a stake sale.
Summit Midstream Partners
Energy Capital Partners owns Summit Midstream Partners’ GP (general partner) and 44% of its limited partner interest. It expects at least $2 billion from this deal. The private equity sponsor might also consider taking the assets public in case the offers are too low. Summit Midstream Partners provides natural gas, crude oil, and produced water gathering and processing services.
Columbia Pipeline Partners
Columbia Pipeline Partners (CPPL) is next on our list of the top five worst midstream MLP performers on September 23. Columbia Pipeline Partners’ losing streak continued yesterday with a single-day loss of 8.09%. It has lost 30.70% of its equity value in the last month. The partnership is engaged in the natural gas transmission and storage business. Columbia Pipeline Partners started trading in February 2015. Since then, the stock has returned -50.30%.
Other worst performers
DCP Midstream Partners (DPM), MPLX LP (MPLX), and Phillips 66 Partners (PSXP) were among the top five worst midstream MLP performers on Wednesday, September 23. They fell 6.98%, 6.90%, and 6.58% in the last trading session, respectively. These three stocks have returned -43.36%, -46.03%, and -33.70% YTD (year-to-date), respectively.
MPLX moves in tandem with MarkWest Energy (MWE) since their merger announcement. MarkWest Energy fell 2.95% 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.
The Alerian MLP ETF (AMLP) and the First Trust North American Energy Infrastructure Fund (EMLP) fell 3.94% and 1.90% yesterday, respectively. Together, they account for 9.57% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 3.02% on the same day.
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