Magellan Midstream Broadly Tracked Sector Returns in 2016
Magellan Midstream Partners (MMP), headquartered in Tulsa, Oklahoma, is engaged in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States.
MMP owns one of the longest refined petroleum products pipeline systems in the United States, with access to nearly 50% of the country’s refining capacity. It can store more than 95 million barrels of petroleum products.
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MMP’s asset base
MMP has ~9,700 miles of pipeline system for refined products and LPGs (liquefied petroleum gases) in the United States, extending from the Gulf Coast and covering 15 states across the central United States. The system includes 42 million barrels of storage capacity at 54 connected terminals and 26 independent terminals not connected to the pipeline system.
MMP also operates five marine terminals located along coastal waterways, with a total storage capacity of ~26 million barrels. The above map depicts MMP’s business US assets. MMP has no IDRs (incentive distribution rights).
MMP trades above its 50-day moving average
The graph above shows MMP’s stock price compared to its 50-day and 200-day moving averages. MMP’s stock is trading 2% above its 50-day moving average. The stock crossed below its 50-day moving average in July 2016, but it’s risen recently, crossing above this level.
MMP has mostly been trading above its 200-day average since mid-April 2016. It fell below its 200-day moving average for a short time in September, but it has since recovered.
MMP’s year-to-date rise in 2016
MMP is currently trading at a rise of 4% from its price at the beginning of 2016. Other midstream energy companies such as Enterprise Products Partners (EPD), Energy Transfer Partners (ETP), and Williams Partners (WPZ) have risen 5%, 10%, and 34%, respectively, in the same period. The Alerian MLP ETF (AMLP), which holds top infrastructure MLPs, has risen 5% since the start of 2016.