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Summit Midstream Partners: Top Midstream MLP Loser on August 19

Kurt Gallon

Midstream and Upstream MLP Gainers and Losers on August 19

(Continued from Prior Part)

Top losers

In the last part of this series, we saw the top five midstream MLP gainers on August 19. In this part, we’ll discuss the top five midstream MLP losers on the same day.

Summit Midstream Partners

Summit Midstream Partners (SMLP) was the top loser among midstream MLPs at the end of trading on Wednesday, August 19. It fell 4.48% in a single trading session yesterday. Summit Midstream Partners has fallen 13.51% since its weak 2Q15 earnings were announced on August 5. It missed the 2Q15 revenue and EPS (earnings per share) estimates by 7.55% and 57.16%, respectively. The partnership provides crude oil, natural gas, and produced water gathering services.

Rose Rock Midstream

Rose Rock Midstream (RRMS) is next on our list of the top five midstream MLP losers on August 19. It fell 4.18% yesterday. With yesterday’s loss, Rose Rock Midstream’s YTD (year-to-date) returns fell to -27.37%. The partnership is involved in crude oil gathering, transportation, storage, and marketing. SemGroup (SEMG) owns 100% of Rose Rock Midstream’s general partner.

Other losers

Midcoast Energy Partners LP (MEP), American Midstream Partners (AMID), and DCP Midstream Partners LP (DPM) were among the top five midstream MLP losers on Wednesday, August 19. They fell 3.97%, 3.97%, and 3.56% in the last trading session, respectively. They’ve returned -18.71%, -25.16%, and -36.12% YTD.

American Midstream Partners has rallied 50.81% since the announcement of a drop-down from ArcLight Capital Partners in a press release published on August 10, 2015. According to the press release, “an affiliate of ArcLight Capital Partners, LLC (“ArcLight”), which controls the general partner of the Partnership, to drop down 25 percent of ArcLight’s 51.7 percent controlling interest in Delta House, a fee-based, semi-submersible floating production system (FPS) and associated oil and gas export pipelines in the deepwater Gulf of Mexico.”

The Alerian MLP ETF (AMLP) and the UBS ETRACS Alerian MLP ETN (AMU) have returned -17.18% and -20.86% YTD. DCP Midstream Partners accounts for ~2.29% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned -21.17% YTD.

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