The cost of equity remains low for master limited partnerships which is a positive for funding growth capex.
The cost of debt for MLPs, both investment grade and non-investment grade, continues to trend lower.
The spread between corporate credit and MLP yields remained relatively unchanged last week. However, from a historical perspective the spread is currently wider than average.
Treasury rates remain near all-time lows which has been a positive for MLP stocks.
Fractionation spreads last week declined by nearly seven percent, which cuts into margins of commodity sensitive gas processors.
Continued growth in Marcellus activity should be positive for midstream names with assets strategically located in the area.
The IPO of two MLP closed-end funds should result in increased demand for MLP names and provide price support to the sector.
Fractionation spreads moved slightly higher last week, in a positive move for MLPs with commodity sensitive gas processing contracts.
Propane exports could increase propane demand and lead to higher prices. Higher prices on natural gas liquids such as propane can have a positive effect on margins of commodity price sensitive midstream gas processing companies.
North Dakota oil production continued to grow rapidly in February 2013, boding well for midstream names with assets located in the area.
Midstream companies in the rapidly growing Eagle Ford play in South Texas stand to benefit from continued growth in the area.
Rising propane exports over the next several years could lift propane prices, which would be a negative driver for retail propane distributors.
Rates have maintained their lows, which has been a positive for MLP names which can be sensitive to movements in Treasurys.
The spread between the Alerian MLP Index and BBB corporate credit index further widened by 21 bps for the week ended April 5.
Higher natural gas prices and lower natural gas liquids prices continued to squeeze frac spreads lower last week in a negative catalyst for gas processing names.
The cold snap that occurred towards the end of the winter heating season should benefit propane distributor names next earnings season.
Last week saw a drop in propane prices, which is a theoretical positive for propane distributors though earnings may not be significantly affected given the end of the winter heating season.
Treasury rates continued to move lower last week, which is theoretically positive for the rate-sensitive MLP sector.
Yields on corporate credit (including that of the MLP sector) have continued to compress, which has resulted in cheap debt capital and therefore a positive environment for MLP growth.
The cost of equity for most MLPs has decreased dramatically since the financial crisis, and dividend yields continued to compress through the month of March.