MarkWest Energy Partners (MWE) was the top gainer among midstream MLPs (master limited partnerships) at the end of trading on Monday, July 13. Yesterday, it rose a whopping 13.96% in a single trading session.
MarkWest Energy Partners
MarkWest Energy’s shares rose following an announcement that it would merge with MPLX LP (MPLX). In contrast, MPLX fell 14.15% yesterday.
As a result of this transaction, MarkWest Energy became a wholly owned subsidiary of MPLX. The combined entity would become the fourth-largest MLP with $21 billion in market capitalization.
The proposed transaction combines the second-largest processor of natural gas in the US and largest NGL (natural gas liquid) processor and fractionator of natural gas in the Marcellus and Utica shale plays—MarkWest Energy—with a rapidly growing crude oil and refined products logistics partnership sponsored by Marathon Petroleum (MPC)—MPLX. We’ll analyze the proposed merger in a separate series. So, keep an eye on our Master Limited Partnerships page.
Crestwood Midstream Partners
Next on our list of the top midstream MLP gainers is Crestwood Midstream Partners (CMLP). It rose 3.78% yesterday. However, it has returned -22.20% YTD (year-to-date). On Monday, Crestwood Midstream’s shares rose as natural gas prices (UNG) continued to rise for the third consecutive trading session. Yesterday, natural gas futures rose 3.39%. Crestwood Midstream’s earnings are tied to movements in natural gas prices.
The next three stocks on the list of the top five midstream MLP gainers on July 13 are Genesis Energy (GEL), DCP Midstream Partners (DPM), and Enable Midstream Partners (ENBL). They rose 3.77%, 3.33%, and 3.20%, respectively. All three of the MLPs have exposure to natural gas prices.
The Alerian MLP ETF (AMLP) rose 0.89% yesterday. Together, MarkWest Energy, Crestwood Midstream, Genesis Energy, and DCP Midstream account for ~15.29% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.78% on the same day.