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Midstream MLPs: Who Were the Best Performers on June 26?

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Best performers

Energy Transfer Equity (ETE) was one of the biggest losers among the midstream MLPs (master limited partnerships) on Thursday, June 25. It gained the most at the end of trade on Friday, June 26. This reflects the tug-of-war between bullish and bearish traders in Energy Transfer Equity’s stock. It rose 3.1% on Friday. On the same day, Energy Transfer Equity’s MLP subsidiary, Energy Transfer Partners (ETP) fell by 0.7%.

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Energy Transfer Equity

Energy Transfer Equity’s stock performance has been quite volatile since the rejection of its $53.1 billion merger proposal with Williams Companies (WMB). After a 3.1% single day gain, its YTD (year-to-date) returns have reached 13.6%. Energy Transfer Equity’s relatively solid market performance can be attributed to continuous growth in Energy Transfer Partners’ distributions. Energy Transfer Equity’s earnings are based on distributions from IDRs (incentive distribution rights) and general partner interest in Energy Transfer Partners. For more details on Energy Transfer Partners’ current organization structure, read Energy Transfer Partners Was One of the Strongest MLPs in 2014.

Tesoro Logistics

Tesoro Logistics (TLLP) is next on our list of midstream gainers. Its stock gained 1.4% on Friday. Tesoro Logistics is one of the leading full-service logistics MLPs operating primarily in the western and mid-continent regions of the US.

Tesoro Logistics’ performance has been pretty stable over the last six months—despite the weakness in energy prices. It has returned 1.7% YTD. Tesoro Logistics’ stable performance can be attributed to lesser exposure to commodity prices compared to other midstream MLPs.

Other best performers

The next three stocks in our list of the five best performers include Williams Partners (WPZ), Western Gas Partners (WES), and Enterprise Product Partners (EPD). Williams Partners and Western Gas Partners gained 0.9% and 0.1% on Friday, respectively. Enterprise Product Partners didn’t change. The three stocks have returned -1.5%, -12.6%, and -16.6% YTD, respectively.

The Alerian MLP ETF (AMLP) lost 0.4% on Friday. Together, Energy Transfer Partners, Tesoro Logistics, Williams Partners, Western Gas Partners, and Enterprise Product Partners account for ~31.05% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 0.6% on Friday.

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