Market Insights

Industry Overview- October 2017

Master Limited Partnerships (“MLPs”) returned -4.14% during the month of October compared to +2.33% for the S&P 500. October was a difficult month for MLPs. The AMZ fell 9% over a 14-day period mid-month following a couple surprise distribution announcements and the launch of a new $800mm IPO from international supermajor BP p.l.c. During this sell-off investor sentiment reached a 2017 low, in our view, as crude oil prices made steady gains and added insult to injury to... Read More
at Monday, November 20, 2017

Industry Overview- September 2017

Master Limited Partnerships (“MLPs”) returned +0.69% during the month compared to +2.06% for the S&P 500. The AMZ continued to bounce off its 2017 low made during August, supported by rising crude prices (+9%), some positive financing announcements (after some that weighed on the space in August), and the dissipation of some technical headwinds at the very end of the quarter related to methodology changes of the industry benchmark, the Alerian MLP Index. Crude Price... Read More
at Thursday, October 12, 2017

Industry Overview- August 2017

Master Limited Partnerships (“MLPs”) returned -4.94% during the month compared to +0.31% for the S&P 500. The AMZ reached a 2017 low halfway through the month despite an overall solid Q2 earnings season as crude prices and select headlines weighed on the space. Crude Prices Crude correlation trended lower for the second month in a row in August, with a 0.42 correlation between WTI and the AMZ. However, crude prices were down 5.9% on the month and helped contribute to... Read More
at Tuesday, September 12, 2017

Industry Overview- July 2017

Master Limited Partnerships (“MLPs”) returned 1.29% during the month compared to +2.06% for the S&P 500. July was a breath of fresh air as not only was it the first positive total return month for the AMZ since February, but the correlation to crude prices retreated back to more normalized levels. Crude Correlation Takes A Back Seat… For Now Crude oil reversed its slide last month and closed the month above $50.00, a level last reach in late May. Crude draws... Read More
at Tuesday, August 15, 2017

Industry Overview- June 2017

Master Limited Partnerships (“MLPs”) returned -0.65% during the month compared to +0.62% for the S&P 500. June was a volatile month in Midstream land – the AMZ hit a 14-month low of 276.5 on 6/21/17 before rallying during the last 7 trading days to close the month at 297.5. Crude Correlation Remains in the Driver Seat  Crude oil continued its slide during June hitting a 14 month low on 06/21/17 of $42.53 before rallying to close the month at $46.04. Weaker... Read More
at Monday, July 17, 2017

Industry Overview- May 2017

Master Limited Partnerships (“MLPs”) returned -4.52% during the month compared to +1.41% for the S&P 500. This is the third straight month of negative performance for the space driven mostly by Macro factors (i.e. crude prices) and investor sentiment. News from OPEC Meeting Not Positive Enough Crude price volatility driven by the much anticipated OPEC meeting continued. During May we experienced seven trading days with moves of +/- 2.0% or more (1/3 of all the trading... Read More
at Monday, June 19, 2017

Industry Overview- April 2017

Master Limited Partnerships (“MLPs”) returned -1.28% during the month compared to +1.03% for the S&P 500. However, the AMZ outperformed the E&P and OFS indices by 5.8% and 10.8%, respectively1. Crude oil volatility continues to be a headwind for MLP performance despite the correlation between the AMZ and crude prices decreasing month-over- month. Even as crude oil volatility weighed on equity performance, midstream companies continued to announce new organic projects and... Read More
at Monday, May 15, 2017

Industry Overview- March 2017

Master Limited Partnerships (“MLPs”) returned -1.30% during the month compared to 0.12% for the S&P 500. Energy had a tough March driven by declining crude prices and negative headlines coming out of OPEC, which drove most of the AMZ performance. However, companies were able to announce new organic projects, execute on previously announced projects, and raise capital – all very positive signs. Crude Prices Come Back to Center Stage During the first two months of... Read More
at Wednesday, April 12, 2017

Asset TV: MLPs MASTERCLASS [video]

Read More
at Monday, March 20, 2017

Industry Overview - February 2017

Master Limited Partnerships (“MLPs”) returned 0.42% during the month compared to 1.90% for the S&P 500. Energy names were not able to continue their “Trump rally” despite some positive news from project approvals and preliminary OPEC data. However, MLPs managed to outperform the E&P and OFS indices by ~6%. Trump Administrations Pushes Projects Across the Goal Line President Trump has been extremely outspoken about making it easier to build new pipelines... Read More
at Wednesday, March 15, 2017

Industry Overview - January 2017

Master Limited Partnerships (“MLPs”) returned 4.89%¹ during the month compared to 1.90% for the S&P 500. The positive momentum that started in December 2016 carried over into the first month of 2017. The strong January performance was driven mostly by actions and messaging from the Trump administration, a more stable commodity environment, and strong January fund flows. Trump Administrations Bodes Well for Infrastructure The Trump administration has been very clear... Read More
at Tuesday, February 14, 2017

Industry Overview - December 2016

Master Limited Partnerships (“MLPs”) returned 4.39%¹ during the month compared to 1.97% for the S&P 500. The first half of December was surprisingly busy with several individual company announcements, mostly having to do with organic capital expenditures. These announcements, coupled with the usually slow year-end, helped to break down the year-long correlation to crude prices. For the first month in quite some time it appeared like midstream companies and MLPs traded more... Read More
at Wednesday, January 11, 2017

Asset TV: Energy MASTERCLASS [video]

On November 30th, a landmark deal was reached in Vienna in which members of OPEC agreed to cut oil production. The fluctuations in crude prices have sent global markets on a ride, and its stabilization may mean more opportunities in the energy sector.  Jeff Jorgensen joins a panel of MLP and REIT managers to share more about what's coming down the pipeline in 2017.   Read More
Posted by Tony Nguyen at Wednesday, December 21, 2016