On April 6, 2017, Sunoco (SUN) announced the sale of 1,110 convenience stores to 7-Eleven in a deal valued at $3.3 billion.
MLP funds’ capital inflow has recovered slightly in recent quarters compared to the second half of 2015.
MLP-focused funds underperformed the SPDR S&P 500 ETF (SPY) in the recent quarter.
Enterprise Products Partners (EPD) has a track record of consistent growth and financial discipline. It’s expected to offer an attractive upside going forward.
MLPs had a good start to 2017 in terms of M&A activity. The sector saw deals amounting to $27.6 billion in the first two months of the year.
The Permian Basin, which is one of the most prolific US shale plays in recent times, continues to experience strong drilling activity.
Yields for MLPs have come down in recent quarters, driven by the slight recovery of investor confidence in the energy sector.
The Alerian MLP Index is currently trading at a yield spread of 4.6% to the ten-year Treasury rate.
EV Energy Partners (EVEP) was the worst performing MLP in 1Q17.
Southcross Energy Partners (SXE), an MLP involved in natural gathering and processing, was the top gainer in 1Q17.
Gathering and processing MLPs were the best performing MLPs in the first quarter of 2017. The subgroup rose 14.7%.
MLPs ended 1Q17 with positive QoQ (quarter-over-quarter) returns. The quarter was among the best for MLPs since the rout in energy prices.
At a broader level, 53.0% of analysts rate Williams Companies a “buy,” and the remaining 47.0% rate it a “hold.”
Short interest in Williams Companies (WMB) as a percentage of float has come down to 1.4%.
Williams Companies’ 14-day RSI (relative strength index) currently stands at 59.0, which is higher than the industry average of 52.9.
Williams Companies’ EV-to-adjusted EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio using a trailing-12-month adjusted EBITDA is 12.6x.
Williams Companies (WMB) rose 3.1% last week. During the same period, the Alerian MLP ETF (AMLP) and the SPDR S&P 500 ETF (SPY)(SPX-INDEX) were up 1.3% and 0.8%, respectively.
Energy Transfer Equity (ETE) rose above its 50-day SMA (simple moving average), driven by last week’s rally. It’s currently trading 4.7% above its 50-day SMA.
At a broader level, 58.0% of analysts rate Energy Transfer a “buy,” and the remaining 42.0% rate it a “hold.”
Short interest in Energy Transfer Equity (ETE) as a percentage of float ratio has risen to 7.6%. That ratio is higher than the past one-year average of 6.3%.