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It was a short, wild week to start December, with tons of macro action, sparked by tweets, arrests in Canada and OPEC hallway chatter. Amidst all the volatility and noise, midstream outperformed the S&P 500 and energy stocks broadly. electricity definition Oil finished up for a second straight week and appears to have stabilized after OPEC and Russia delivered the goods. gas 78 facebook With the OPEC uncertainty put to rest for now, sentiment on midstream appears to be firming.

With just 15 trading days left this year, midstream is down between 3-6% depending on how you look at the universe, which is a lot better than Bitcoin this year. U.S. midstream has produced a positive total return year over year (AMUS +1.7%), while Canada has dragged down the North American midstream universe (AMNA -2.4%). The biggest midstream stock in Canada will take center stage next week with its analyst day, in hopes of reversing that trend.

The above commentary was largely expected and good to hear. But as noted here last week, what gets the sector out of the penalty box is seeing the dust settle on the numerous still pending mergers, recent distribution cuts (stealth or outright), and index rebalances. gas utility cost All of that, plus no hiccups from producer guidance season or commodity prices. More of those stars align each week.

The big winners this week included several likely beneficiaries of the new Alerian MLP Index methodology announced last Friday and to be implemented with the special re-balance next week around SEP/EEP and for the quarterly re-balance on 12/21. electricity vs gasoline Non-index names that would seem to qualify under the new methodology traded up, including MMLP, DKL, PBFX. t gastrobar el tenedor NGL Energy and SMLP also caught a bid on no news.

Among the big losers, HCLP stands out as a potential loser in the Alerian MLP Index methodology change. APU was down after parent UGI held its analyst day and announced a strategic review that has a possible distribution cut (stealth or outright) as an outcome of the IDR evaluation, in an effort to get APU closer to targets of 1.2x coverage and 4.0x leverage. SPH seemed to trade off in sympathy with APU. gas laws worksheet answers and work ANDX was down when MPLX’s analyst day offered no strategic resolution on its future.

Median performance among GPs and midstream corporations was better than the MLP Index, but larger cap names within this group underperformed, notably KMI, WMB and OKE. Those names, which have benefitted from S&P 500 inclusion in the past seemed to be dragged down by broad market weakness this week. PAGP took a break after last week’s gains. ALTM outperformed as they gain greater awareness with conference attendance and analyst initiations.

Canadian had a full week of trading and was universally positive on Wednesday when the U.S. market was closed. grade 6 electricity unit test Implications of the Alberta-mandated production cut (announced over last weekend) weighed on the small, intra-Canada focused stocks in the universe like Gibson, Keyera and Pembina. Gibson had benefitted in the wholesale business from wide WCS differentials to WTI, and with differentials down those margins will come in, and also storage demand might now be as robust with lower production.