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June 23’s MLP Gainers: Crestwood Midstream and Targa Resources

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Major gainers

Crestwood Midstream Partners (CMLP) was the biggest gainer among midstream MLPs at the end of trading on Tuesday, June 23. CMLP stock saw a single day’s gain of 3.5%. CMLP’s general partner, Crestwood Equity Partners (CEQP), rose 1.75% yesterday. CMLP develops and operates of natural gas, NGL (natural gas liquid), and crude oil gathering, processing, storage, and transportation assets in many unconventional shale plays across the United States.

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Crestwood Midstream Partners

Although CMLP stock gained 3.5% yesterday, it’s still way below its 2014 highs. The stock has fallen 18.0% year-to-date and 18.6% since a merger announcement from Crestwood Midstream Partners and its general partner, Crestwood Equity Partners (CEQP). This fall might indicate that investors aren’t happy with the merger. 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?

Targa Resources Partners

Next in our list of midstream gainers is Targa Resources Partners (NGLS). NGLS stock rose 2.2% yesterday. But the stock is still close to its 52-week low of $37.30. It’s lost 14.8% year-to-date. NGLS is mainly involved in midstream natural gas services, which include natural gas gathering, processing, and compression. A significant amount of the partnership’s earnings relate to fluctuations in natural gas prices (UNG). This relationship could be why NGLS has performed poorly in the market.

Other midstream gainers

Other midstream gainers on Tuesday, June 23, were Williams Partners (WPZ), NuStar Energy (NS), and Boadwalk Pipeline Partners (BWP). WPZ, NS, and BWP gained 1.4%, 0.9%, and 0.8%, respectively.

The Alerian MLP ETF (AMLP) lost 0.1% yesterday. WPZ, NS, CMLP, and NGLS together make up ~16.5% of AMLP.

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