American Midstream Partners (AMID) was the top gainer among midstream MLPs at the end of trading on Tuesday, August 18. It rose 8.17% yesterday.
American Midstream Partners
American Midstream Partners has rallied 57.05% since the announcement of a drop-down from ArcLight Capital Partners in a press release published on August 10, 2015. According to the press release, “an affiliate of ArcLight Capital Partners, LLC (“ArcLight”), which controls the general partner of the Partnership, to drop down 25 percent of ArcLight’s 51.7 percent controlling interest in Delta House, a fee-based, semi-submersible floating production system (FPS) and associated oil and gas export pipelines in the deepwater Gulf of Mexico.”
Also, “In conjunction with closing the drop down, the Partnership intends to recommend to its board of directors the resumption of annualized distribution increases of approximately five percent.”
MarkWest Energy Partners
MarkWest Energy Partners (MWE) is next on our list of the top midstream MLP gainers. It rose 2.57% yesterday. With yesterday’s gain, MarkWest Energy’s YTD (year-to-date) returns improved to -12.19%. MPLX (MPLX) moves in tandem with MarkWest Energy Partners since their merger announcement. Traders take advantage of any discrepancy in the swap ratio dictated prices. MarkWest Energy rose 1.33% yesterday. For an in-depth analysis of the MarkWest Energy-MPLX merger, read Key for Investors: Analyzing the MarkWest-MPLX Merger.
The remaining two MLPs on the list of the top five midstream MLP gainers on August 18 are Dominion Midstream Partners (DM) and Columbia Pipeline Partners (CPPL). They rose 1.64% and 1.46%, respectively. Dominion Midstream Partners has returned -11.40% YTD. Columbia Pipeline Partners started trading in February 2015. Since then, the stock has returned -28.92%.
The Alerian MLP ETF (AMLP) and the UBS ETRACS Alerian MLP ETN (AMU) fell 0.54% and 0.72% yesterday, respectively. MarkWest Energy accounts for ~8.06% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.36% on the same day.