It seems like MLP companies are losing their charm for energy investors. At least that’s what the Rice Midstream Partners’ (RMP) stock reaction seems to say.
Antero Midstream and Shell Midstream stocks rose significantly, while Rice Midstream’s stock fell by 1.2%, falling below its IPO price of $16.50 the first day of trading.
Rice Energy is Rice Midstream’s largest customer. For 2015, Rice Energy is projected to represent about 84% of Rice Midstream’s gathering volumes.
Rice Midstream Partners’ (RMP) initial assets consist of natural gas gathering and compression assets in the Marcellus Shale in southwestern Pennsylvania.
Rice Energy owns 100% of the equity interests of Rice Energy Appalachia, which in turn holds 100% of the equity interests of Rice Midstream Holdings.
On December 8, Rice Energy announced the IPO of Rice Midstream Partners, which will acquire and operate midstream assets in the Marcellus and Utica Shales.
The UBS ETRACS Wells Fargo MLP Index ETN (MLPW) tracks the Wells Fargo Master Limited Partnership Index (WMLP).
The UBS ETRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN (MLPS) tracks the Alerian MLP Infrastructure Total Return Index (AMZIX).
The UBS ETRACS Alerian Natural Gas MLP Index ETN (MLPG) consists of 20 gas-weighted energy MLPs. MLPG tracks the Alerian Natural Gas MLP Index (ANGI).
The UBS ETRACS Alerian MLP Infrastructure Index ETN (MLPI) tracks the Alerian MLP Infrastructure Index (AMZI).
The UBS ETRACS Alerian MLP Index ETN (AMU) tracks the Alerian MLP Index (AMZ), which lists 50 large- and mid-cap energy-related master limited partnerships.
A fund can’t invest more than 25% of assets in master limited partnerships (MLPs), so MLP ETFs structure themselves to forfeit this special tax treatment.
ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.
MLPs (master limited partnerships) represent one component of the energy sector that has performed relatively well amid tanking oil prices.
MLPL tracks the same index as the UBS ETRACS Alerian MLP Infrastructure Index ETN (MLPI).
MPLX shows the steepest fall in its EV/EBITDA, indicating expectations for the strongest EBITDA growth among its peers here.
Marathon Petroleum Corporation (MPC) recently announced an agreement with Enbridge Energy (EEP) to serve as an anchor shipper on its Sandpiper Pipeline.
MPLX LP’s (MPLX) primary growth strategy is to accelerate its annual distribution growth rate to average in the mid-20% range over the next five years.
Barclays PLC (BCS) rated MPLX as “overweight,” pinning the 12-month target price at $78 and one year returns at 48.91%.