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Upstream MLPs: Negatively Affected by Yesterday’s Crude Oil Fall

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Nov. 20 2020, Updated 5:16 p.m. ET

United States Oil Fund

In the previous parts in this series, we analyzed the best and worst performing midstream MLPs (master limited partnerships) on Monday, June 29. In this part, we’ll analyze the performance of energy-related ETFs on the same day.

The United States Oil Fund (USO) fell 2.4% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. Crude oil futures fell more than $1 per barrel yesterday due to fears of a Greek default. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 3.23% yesterday.

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E&P MLPs

E&P (Exploration and Production) MLPs like Atlas Resource Partners (ARP), BreitBurn Energy Partners (BBEP), and EV Energy Partners (EVEP) were badly affected by yesterday’s huge fall in crude oil prices. They lost 8.11%, 3.39%, and 5.05%, respectively, in a single trading session on Monday. E&P companies’ significant earnings are tied to crude oil and natural gas prices. The US Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It rose 1.05% yesterday.

They’ve returned -41.8%, -34.9%, and -40.4% YTD (year-to-date). For a detailed analysis of BreitBurn Energy Partners’ recent performance, read Analyzing BreitBurn Energy Partners in the Energy Aftermath.

Alerian MLP ETF

Upstream MLPs weren’t the only ones affected by the fall in crude oil. The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It lost 1.39% yesterday. With this loss, AMLP crossed its 52-week low. Its new 52-week low is $15.63. AMLP has returned -10.79% YTD.

AMLP outperformed the SPDR S&P 500 ETF Trust (SPY) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.7% and 1.8% yesterday. SPY tracks the broader S&P 500 Index. It fell 2.10% yesterday.

For more company and industry analyses on MLPs, visit our Master Limited Partnerships page.

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