|Bid||0.00 x 40700|
|Ask||0.00 x 3200|
|Day's Range||10.18 - 10.32|
|52 Week Range||9.01 - 12.22|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.85%|
MLPs continued to rise for the second-consecutive week in the week ending May 18. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, rose 3.1% during the week and ended at 267.6. Out of the total 90 MLPs, 62 ended in the green, five remained unchanged, and 23 ended in the red. Among the top MLPs, Williams Partners (WPZ), Plains All American Pipelines (PAA), Energy Transfer Partners (ETP), and Enterprise Products Partners (EPD) rose 10.0%, 4.7%, 2.8%, and 2.8%, respectively.
MLPs have been on a recovery path due to improvements in their financial positions, prudent capital spending, and—most importantly—recovery in earnings growth resulting from strong US production growth and strong crude oil prices.
Between May 10 and May 17, major energy ETFs’ correlations with US crude oil June futures were as follows: VanEck Vectors Oil Services ETF (OIH): 60.4% SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 42.1% Alerian MLP ETF (AMLP): 24.9% Energy Select Sector SPDR ETF (XLE): 8.8%
Cheniere Energy Partners (CQP), the MLP subsidiary of Cheniere Energy (LNG), continues to lead in terms of earnings growth among top MLPs and among all the constituents of the Alerian MLP ETF (AMLP). CQP posted 106.6% YoY EBITDA growth in the first quarter of 2018. Moreover, it surprised the markets with an earnings beat of 19.7%. Cheniere Energy, which reports earnings at the consolidated level, saw similar earnings growth during the first quarter. For CQP’s and LNG’s earnings drivers, see Cheniere Energy Beats Wall Street Again, Increases 2018 Guidance. Increased 2018 distribution
On May 3–10, major energy subsector ETFs’ correlations with US crude oil June futures were: the VanEck Vectors Oil Services ETF (OIH) at 45.6% the Energy Select Sector SPDR ETF (XLE) at 34.6% the Alerian MLP ETF (AMLP) at 13.1% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) at -13.1%
The Alerian MLP ETF (NYSE Arca: AMLP) declared its second quarter 2018 distribution of $0.2066 on Wednesday, May 9th. The dividend is payable on May 17, 2018 to shareholders of record on May 11, 2018. ALPS Portfolio Solutions Distributor, Inc. is also the distributor for the Alerian Energy Infrastructure ETF, the ALPS | Alerian MLP Infrastructure Index Fund and the ALPS | Alerian Energy Infrastructure Portfolio.
Oil producers are pumping fiercely, and crude prices are up since last summer but still below previous peaks. To some, in short, it looks like a good time to invest in master limited partnerships, especially those that own such facilities as pipelines, refineries and tank farms, and offer investors high yields—in the range of 7% to 9%. Some experts warn, however, that the handsome yields of MLPs can be a siren song for investors who can’t stomach energy-industry volatility.
The following Q&A is from a discussion that originally took place as part of Closed-End Fund Association’s podcast series on Friday, April 20, 2018. Joined by Ed Russell, Managing Director — Tortoise, and James Cunnane, Managing Director and Chief ...
“A clock in a thunderstorm.” That’s how Robert Louis Stevenson described those fortunate, unflappable souls who move through life’s ups and downs at their own pace, without getting rattled by the behavior of others. That picture of equanimity could ...
Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) have been volatile before their 1Q18 earnings. That could be attributed to the general uncertainty in the midstream energy sector due to the rise in the U.S. Treasury yield. ETE has fallen 8.1% since the start of the year, while ETP has risen 1.2%.
Buckeye Partners’ (BPL) stock performance has been strong ahead of its 1Q18 earnings. The partnership has gained 9.3% since the beginning of April. During the same timeframe, the Alerian MLP ETF (AMLP), which comprises 25 energy MLPs, has risen 7.7%.
So far in this series, we have discussed the performance of the broader MLP sector, top MLP gainers, and top MLP losers in the week ending April 27. In this part, we’ll discuss MLP rating updates last week.
MLPs cooled off in the week ending April 27 after rallying for two consecutive weeks. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, rose 0.5% during the week and ended at 258.0.
Cheniere Energy (LNG) stock has been strong ahead of its 1Q18 earnings announcement. Cheniere Energy’s strong recent gains can be attributed to positive updates on Train 3 at Corpus Christi and strong earnings growth expectations. Cheniere Energy is among the top midstream companies that are expected to post strong earnings growth in 1Q18.
Williams Partners (WPZ) announced a distribution of $0.614 per unit for 1Q18, which represents a 2.3% increase compared to 4Q17. The partnership announced a 29.0% distribution cut effective 1Q17 as part of the financial repositioning plan. Since then, it has declared a flat distribution of $0.60 per unit until 4Q17.
So far, Enterprise Products Partners (EPD) stock has risen ~1% in 2018. The stock has outperformed the Alerian MLP ETF (AMLP), which has fallen 7% YTD (year-to-date). Kinder Morgan (KMI) has fallen 13% YTD, while Plains All American Pipeline (PAA) has risen 18% YTD. Crude oil prices have risen ~14% YTD. To learn more about how key MLP indicators are trending, read How Key Indicators for Energy MLPs Are Trending. Read Will US Crude Oil Prices Hit $70 per Barrel in the Coming Weeks? to learn more about the latest factors impacting crude oil prices.
Energy Transfer Equity (ETE) was trading at a distribution yield of ~7.7% on April 20. The recent surge in ETE’s stock price resulted in a decline in the general partner’s distribution yield. However, ETE’s current yield is still above its 2018 lows and historical averages.
In the week ending April 20, MLPs rallied for the second consecutive week. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, rose 3.5% during the week and ended at 256.8. The index has gained 7.0% in the last two weeks.
Energy Transfer Equity (ETE), the MLP GP (general partner) of Energy Transfer Partners (ETP), has risen ~12.0% month-to-date, supported by strong gains in crude oil prices and a general recovery in the midstream energy sector. The Alerian MLP ETF (AMLP) has gained 6.9% during the same timeframe.
Kinder Morgan (KMI) stock rose 7.4% last week. The company reported strong 1Q18 results on April 18 after the markets closed. KMI rose 2.3% on April 19. Kinder Morgan also opened last week strong with a 2.3% rise on Monday, followed by a 2.2% rise on Tuesday.
The US earnings season has begun for midstream energy companies. On April 18, 2018, Kinder Morgan (KMI) announced its first-quarter results.
USA Compression Partners (USAC), CSI Compressco (CCLP), and Archrock Partners (APLP) are up 11%, 32%, and 4%, respectively, so far in 2018. The compression services MLPs outperformed the Alerian MLP ETF (AMLP) and the Energy Select Sector SPDR ETF (XLE) during this period. AMLP and XLE are down nearly 7% and 1%, respectively, year-to-date.