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Midcoast Energy: Top Midstream MLP Gainer on Tuesday, August 11

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Top gainers

Midcoast Energy Partners (MEP) was the top gainer among midstream MLPs at the end of trading on Tuesday, August 11. It rose 6.48% in a single trading session yesterday.

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Midcoast Energy Partners

Midcoast Energy Partners has risen ~21.10% since its 2Q15 earnings announcement on July 29, 2015. It declared a distribution of $0.3475 per unit for 2Q15. This represents an 8.50% YoY (year-over-year) rise compared to 2Q14 and a 1.40% sequential rise over 1Q15. The partnership’s 2Q15 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and distributable cash flow rose by 34.70% YoY and 46.70% YoY, respectively, over 2Q14.

Midcoast Energy Partners was formed by Enbridge Energy Partners (EEP) to own and grow its natural gas and NGL (natural gas liquid) midstream business in the US. Both of the partnerships are part of Enbridge (ENB). Currently, Midcoast Energy Partners operates the following two businesses:

  • natural gas gathering, processing, and transportation
  • logistics and marketing

According to Midcoast Energy, its “Logistics and Marketing business markets natural gas, NGLs and condensate received from the gathering, processing and transportation business to wholesale customers.”

TC Pipelines

TC Pipelines (TCP) is next on our list of the top midstream MLP gainers. It rose 2.45% yesterday. With yesterday’s rise, TCP’s YTD (year-to-date) returns improved to -23.65%. The partnership mainly provides natural gas transmission and storage services.

Other gainers

The next three stocks on the list of the top five midstream MLP gainers on August 11 are DCP Midstream Partners (DPM), Boardwalk Pipeline Partners (BWP), and Sunoco Logistics Partners (SXL). They rose 1.76%, 1.65%, and 1.61%, respectively. These three stock have returned -33.94%, -23.64%, and -15.46% YTD. DCP Midstream and Sunoco Logistics Partners released their 2Q15 earnings on August 5, 2015. We’ll provide an in-depth analysis of their 2Q15 earnings in a separate series. So, be sure to watch Market Realist’s Master Limited Partnerships page.

The Alerian MLP ETF (AMLP) rose 0.20% yesterday. Together, DCP Midstream, TC Pipeline Partners, and Sunoco Logistics Partners account for 9.73% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 0.40% on the same day.

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