Spectra Energy Partners: Best Midstream Performer on August 5



Best performers

In the last part of this series, we saw the top five worst midstream MLP performers on Wednesday, August 5. In this part, we’ll discuss the top five best midstream MLP performers on the same day.

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Spectra Energy Partners

Spectra Energy Partners (SEP) was the best performer among midstream MLPs at the end of trading on Wednesday, August 5. It rose 1.54% yesterday. With yesterday’s gains, Spectra Energy Partners’ YTD (year-to-date) returns rose to -14.59%.

Spectra Energy Partners’ rise can be attributed to its solid 2Q15 operating results announced yesterday. Its distributable cash flows and EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 34% and 29% YoY (year-over-year), respectively. Its distribution grew by 8.38% during the same timeframe. Spectra Energy (SE) is one of North America’s leading pipeline and midstream companies. It holds a 100% general partner interest in Spectra Energy Partners.

Western Refining Logistics

Western Refining Logistics (WNRL) is next on our list of the top five best midstream MLP performers. It was one of the biggest losers on Tuesday, August 4. It rose slightly, by 0.75%, yesterday. Its units might trade even higher considering its strong 2Q15 operating results and distribution growth. Western Refining Logistics’ 2Q15 EBITDA and distributable cash flow rose by 81.70% and 21.40% YoY, respectively, over 2Q14.

Other best performers

The next three stocks on the list of the top five best midstream MLPs on August 5 are Holly Energy Partners (HEP), Columbia Pipeline Partners (CPPL), and ONEOK Partners (OKS). They were actually losers. This shows how badly the entire midstream sector did yesterday. They fell 1.25%, 1.39%, and 1.40%, respectively. Holly Energy Partners and ONEOK Partners have returned -2.11% and -21.78% YTD, respectively. Columbia Pipeline Partners started trading on February 6, 2015. Since then, it has returned -17.70%.

The Alerian MLP ETF (AMLP) fell 3.46% yesterday. Together, Spectra Energy Partners and ONEOK account for ~7.85% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.26% on the same day.


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