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Weekly Wrap-Up: MLPs Weak Last Week amid Crude Oil Volatility

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Weekly Wrap-Up: MLPs Weak Last Week amid Crude Oil Volatility PART 2 OF 5

Leading MLP Losers in Week Ended September 8

Top loser: USD Partners

USD Partners (USDP), which owns, acquires, and develops crude oil by rail terminals, was the top MLP loser last week, which ended September 8, 2017. It fell 17.4%. The partnership has fallen 41.5% since the beginning of this year. USDP’s fall last week could be attributed to the weak crude by rail volumes from Canada in June 2017. According to the recent crude by rail report published by the EIA (U.S. Energy Information Administration), crude oil by rail from Canada fell to 3.2 MMbpd (million barrels per day) in June 2017 compared to 4.8 MMpbd in the previous month.

USDP’s huge YTD (year-to-date) fall could also be attributed to its weak earnings driven by underutilization of the Casper and Hardisty terminal facilities and the expiration of an important take or pay contract at the Casper terminal.

Leading MLP Losers in Week Ended September 8

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Southcross Energy Partners

Southcross Energy Partners (SXE), the MLP mainly involved in natural gas gathering and processing, was the second-highest MLP loser last week. It fell 9.6%. The partnership is still trading far below the levels before the rout in energy prices. SXE’s last week’s fall could be mainly attributed to the weakness in crude oil prices.

Delek Logistics Partners

Delek Logistics Partners (DKL), the MLP formed by Delek US Holdings (DK) to own, acquire, and operate crude oil and refined products transportation, terminaling, and marketing assets, was the third-largest MLP loser last week. It fell 8.7%. The partnership has fallen 18.0% from its YTD high of $35.30, which it saw just ahead of its 2Q17 earnings. The huge fall following those earnings could be attributed to its weak 2Q17 results. It reported a loss of $37.9 million in 2Q17 compared to a loss of $7.0 million in 2Q16.

Other top MLP losers

Calumet Specialty Products Partners (CLMT), Antero Midstream Partners (AM), Alon USA Partners (ALDW), Alliance Holdings GP (AHGP), Mid-Con Energy Partners (MCEP), Martin Midstream Partners (MMLP), and Alliance Resource Partners (ARLP) were among the top ten MLP losers last week.

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