RECENT MLPs RESEARCH
A movement down in most NGL prices last week was negative for gas processing MLPs.
Warmer weather last week was a negative for propane distributors such as APU, SPH, and FGP.
Last week’s movement down in interest rates is a positive indicator for MLP stocks which can be sensitive to rate changes given their yield feature.
Fractionation spreads increased slightly last week which is a positive for natural gas processors (many of which are MLPs).
Rates on Treasurys moved up last week. A continued move up in Treasury rates could be a negative sign for MLPs which often trade on yield.
Last week’s capital markets activity demonstrated that MLPs continue to be able to access the debt and equity markets at attractive rates which is positive for growth.
Last week saw most natural gas liquids (NGL) prices move upward, a positive for some master limited partnerships (MLPs) involved in natural gas processing and fractionation such as MarkWest Energy…
Spreads between MLPs and corporate credit narrowed on the week, which was positive for the relative value of MLPs.
Master limited partnerships (MLPs) can be sensitive to rate movements, as many investors view MLPs as a yield instrument. To think of it simply, if rates on US government Treasurys…
Drilling activity in the Permian Basin in West Texas has rapidly increased over the past several years creating opportunities for certain midstream players.
Propane distributors such as AmeriGas Partners (APU), Ferrellgas Partners (FGP), and Suburban Propane Partners (SPH) can see reduced demand from their customers when propane prices rise. This is because propane…
Last week’s movement in NGL and natural gas prices was a positive for natural gas processors.
MLP distributions announced so far in 2013 show positive growth.
The Bakken shale boom in North Dakota benefits certain midstream companies operating in the area.
When energy companies produce natural gas, the raw stream which comes from the ground must first be processed before it can be effectively used. Many of the companies that process…
A look at how to calculate frac spreads, a measure of the difference between nat gas and NGL prices.
Last week’s nat gas and NGL price movements ultimately resulted in fractionation spreads being down slightly.
Many MLPs have an agreement between the General Partner and Limited Partners that determines how the total percentage of cash distributions will be allocated between the GP and LP unitholders. In some cases, there is a mechanism called the “incentive distribution right” or IDR that allows the GP to receive an incrementally larger percentage of distributions as the amount distributed increases.
This article is designed to provide a basic overview of master limited partnerships (MLPs). More detailed explanations will follow in further articles. A master limited partnership or “MLP” is a…
Currently, the capital markets are positioned to help fund MLPs’ growth, and this is constructive for the majority of MLP names such as Kinder Morgan Energy Partners (KMP), Enterprise Product Partners (EPD), Plains All American Pipeline (PAA), and MarkWest Energy (MWE).