These MLPs Fell at Least 6% Last Week
EV Energy Partners
EV Energy Partners (EVEP) continued to be the worst-performing MLP (master limited partnership) for the second-straight week last week (ended August 18, 2017). The upstream MLP fell 12.3% to $0.4 per unit due to weakness in crude oil prices and its weak 2Q17 earnings results.
For 2Q17, EVEP reported a 19.0% YoY (year-over-year) fall in its adjusted EBITDAX (earnings before interest, tax, depreciation, amortization, and accretion expense) due to declines in production.
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Notably, the survival of EVEP and other upstream MLPs remains uncertain amid the prolonged weakness in energy prices and weak liquidity positions.
CVR Partners (UAN), the MLP formed by CVR Energy (CVI) to own and operate its nitrogen fertilizer business, was the second-worst performer last week. The partnership fell 9.5% and has fallen 52.2% since the beginning of this year.
CVR Partners’ weak YTD (year-to-date) performance can mainly be attributed to the weakness in ammonia prices. (For a detailed post-earnings analysis of major fertilizer companies, read Market Realist’s series Big Fertilizer: Comparing the Major Players’ 2Q17 Results.)
Viper Energy Partners
Viper Energy Partners (VNOM), the MLP formed by Diamondback Energy (FANG) to own and acquire its natural gas and crude oil assets in the US, was the third-biggest loser last week, falling 8.8%. This fall could be attributed to the weakness in crude oil prices last week, raising concerns over future drilling activity. Notably, VNOM owns oil and gas properties in the prolific Permian Basin.
Other top MLP losers
NuStar GP Holdings (NSH), Navios Maritime Midstream Partners (NAP), Natural Resource Partners (NRP), Teekay LNG Partners (TGP), Ferrellgas Partners (FGP), Plains All American Pipeline (PAA), and Hi-Crush Partners (HCLP) were also among the top ten MLPs losers last week.
In the next part, we’ll look at the top MLP gainers last week.