In the last part of this series, we discussed the top five best midstream MLP performers on Wednesday, August 12. In this part, we’ll discuss the top five worst midstream MLP performers on the same day.
Niska Gas Storage Partners
Niska Gas Storage Partners (NKA) was the worst performer among midstream MLPs at the end of trading on Wednesday, August 12. It fell 1.47% yesterday. With yesterday’s loss, the company’s YTD (year-to-date) returns fell to 13.51%. Niska has risen 156.50% since the announcement of its acquisition on June 14, 2015. The company will be acquired by Brookfield Infrastructure (BIP) in an all-cash transaction valued at $911.9 million.
According to the company press release, “Brookfield will acquire all of Niska’s outstanding common units for $4.225 per common unit in cash and will acquire the managing member and the incentive distribution rights in Niska”
After the acquisition of Niska’s natural gas storage assets, Brookfield Infrastructure’s energy infrastructure presence will grow significantly in the US. According to Brookfield Infrastructure, currently its “business consists of the ownership and operation of premier utilities, transport, energy and communications infrastructure assets in North and South America, Australia, and Europe.”
Southcross Energy Partners
Southcross Energy Partners (SXE) is next on our list of the top five worst midstream MLP performers on August 12. It fell 1.45% yesterday. The company has lost more than 50% of its market value since the beginning of this year. The partnership mainly provides natural gas gathering, processing, treating, compression, and transportations services. Apart from this, Southcross Energy Partners is also engaged in natural gas and NGL (natural gas liquid) acquisition and marketing.
Other worst performers
Shell Midstream Partners (SHLX), Targa Resources Partners (NGLS), and Midcoast Energy Partners (MEP) were among the top five worst midstream MLP performers on Wednesday, August 12. Shell Midstream Partners and Targa Resources Partners fell 0.23% and 0.06%, respectively, while Midcoast Energy Partners rose 0.08%. This shows how well the entire midstream sector did yesterday. These three stock have returned -3.44%, -31.79%, and -12.21%, YTD.
The Alerian MLP ETF (AMLP) has returned -16.21% YTD. Together, Shell Midstream Partners and Targa Resources Partners account for ~5.90% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned -15.19% YTD.