In the previous article, we looked at the top five midstream gainers for Friday, June 19. In this article, we’ll talk about the top five midstream losers that day.
Genesis Energy (GEL) was the biggest loser among the midstream MLPs. GEL stock fell 3.9% on Friday. However, the stock has performed quite well year-to-date, rising 6.6%, in the midst of turmoil in the energy sector. GEL has a diverse portfolio of midstream assets, including refinery-related plants, pipelines, storage terminals, and trucking operations.
Crestwood Midstream Partners
Next in the list of midstream losers was Crestwood Midstream Partners (CMLP). CMLP stock fell 3.7% on Friday, June 19. It has fallen 20.9% year-to-date and 25% since the merger announcement of Crestwood Midstream Partners and its general partner Crestwood Equity Partners (CEQP). This might indicate investors are not happy with the merger decision. For more details on the merger between CMLP and CEQP, you can read the Market Realist series Crestwood Midstream and Crestwood Equity Will Merge: Is It a Turning Point?
Other midstream losers include DCP Midstream Partners (DPM), Western Gas Partners (WES), and Enterprise Products Partners (EPD). DPM, WES, and EPD fell 3.2%, 3.2%, and 2.9%, respectively, in their last trading session. As you can see in the above table, all three stocks are close to their 52-week lows of $33.80, $60.10, and $30.70, respectively. They’ve returned -24.3%, -14.4%, and -14.6%, respectively, year-to-date.
The Alerian MLP ETF (AMLP), which is comprised of 25 midstream MLPs, has returned -8% year-to-date. GEL, DPM, EPD, WES, and CMLP together make up ~21.1% of AMLP. EPD alone constitutes ~9.84% of the ETF and is its top holding.
For context, the upstream energy fund SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has gained marginally for the year.