EnLink Midstream Partners (ENLK) was the best performer among midstream MLPs at the end of trading on Wednesday, August 12. It rose 6.07% in a single trading session yesterday.
The entire midstream sector performed well yesterday due to the slight rise in both natural gas (UNG) and crude oil (USO) prices. Natural gas future prices for September delivery rose 3.16% yesterday due to the warmer weather forecast for later this month.
EnLink Midstream Partners
EnLink Midstream has lost over one-third of its market value since the beginning of this year. The company’s poor YTD (year-to-date) market performance can be attributed to its exposure to natural gas and NGL (natural gas liquid) prices. The partnership mainly provides natural gas gathering, processing, transportation, and storage services.
TC Pipelines (TCP) is next on our list of the best midstream MLP performers. The company’s winning streak continued with a single-day gain of 5.74% yesterday. The stock has risen 14.60% in the last three trading sessions. With yesterday’s gain, TC Pipelines’ YTD (year-to-date) returns improved to -19.26%. TC Pipelines provides natural gas transmission and storage services.
Other best performers
The next three stocks on the list of the top five best midstream MLP performers on August 12 were Energy Transfer Partners (ETP), Enterprise Product Partners (EPD), and Columbia Pipeline Partners (CPPL). They rose 4.69%, 4.01%, and 3.94%, respectively. Energy Transfer Partners and Enterprise Product Partners have returned -23.69% and -21.10% YTD, respectively. Columbia Pipeline Partners started trading on February 6, 2015. Since then, it has returned -26.13%.
Enterprise Product Partners’ stock performance has been volatile since its 2Q15 earnings were released on July 29, 2015. For an in-depth analysis of the company’s 2Q15 earnings, read Enterprise Products’ 2Q15 Results: Key Takeaways for Investors.
The Alerian MLP ETF (AMLP) is comprised of 25 midstream MLPs. It fell 0.68% yesterday. Together, TC Pipelines, Energy Transfer Partners, Enterprise Product Partners, and EnLink Midstream account for ~22.65% of AMLP. Enterprise Product Partners is the largest holding of AMLP. It accounts for ~10.37% of the ETF. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 2.47% on the same day.