American Midstream Partners (AMID) was the top gainer among midstream MLPs at the end of trading on Tuesday, August 25. It rose 11.53% yesterday after a four-day losing streak.
American Midstream Partners
American Midstream Partners has lost over 30% of its market value since the beginning of this year. The partnership is primarily involved in natural gas, oil, and condensate gathering, processing, treating, fractionating, and transporting services.
Valero Energy Partners
Valero Energy Partners (VLP) is next on our list of the top midstream MLP gainers. It rose 5.05% yesterday. With yesterday’s gain, its YTD (year-to-date) returns improved to 7.84%. Valero Energy Partners’ solid YTD market performance can be attributed to its strong distribution growth and coverage ratio. Its 2Q15 distribution grew by 31.50% YoY (year-over-year) compared to 1Q14. Its coverage ratio for 2Q15 was 2.17x.
Valero Energy Partners was formed by Valero Energy (VLO) to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets.
The next three MLPs on the list of the top five midstream MLP gainers on August 25 are Transmontaigne Partners (TLP), Spectra Energy Partners (SEP), and Holly Energy Partners (HEP). They rose 5.04%, 4.65%, and 3.49%, respectively. These three stock have returned -6.82%, -15.87%, and 5.22% YTD.
Holly Energy Partners’ units have performed better than most midstream MLPs since the beginning of this year. It has a lower commodity price exposure. Its 2Q15 distributable cash flow grew by 9% YoY compared to 2Q14. It declared a quarterly cash distribution of $0.5450 per common unit for 2Q15. This represents a 6% YoY increase over 2Q14 and a 1.30% sequential increase over the distribution of $0.5375 in 1Q15.
The Alerian MLP ETF (AMLP) and the Global X MLP & Energy Infrastructure ETF (MLPX) fell 4.57% and 1.63% yesterday, respectively. Spectra Energy Partners accounts for ~2.41% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.41% on the same day.