United States Natural Gas Fund
In the last two parts in this series, we analyzed the best and worst performing midstream MLPs on Thursday, September 3. To put those movements into context, we’ll analyze the performance of energy-related ETFs and upstream MLPs on the same day.
The United States Natural Gas Fund (UNG) tracks the daily movements in natural gas futures. It rose 3.05% yesterday. On Thursday, the US natural gas contract for October delivery settled $0.077 higher, or 2.90%, at $2.725 per MMBtu (British thermal units in millions) despite a huge rise in the natural gas stockpiles.
Most upstream MLPs, that have already lost significant market value since the rout in the energy prices, fell marginally despite the slight rise in crude oil and natural gas prices. Top upstream MLP losers include Atlas Resource Partners (ARP), BreitBurn Energy Partners (BBEP), EV Energy Partners (EVEP), and Eagle Rock Energy Partners (EROC). They fell 3.70%, 1.67%, 1.40%, and 1.34%, respectively. For an in-depth analysis on the recent operating and market performance of the four largest upstream MLPs, read Tough Times: How 4 Upstream Energy MLPs Are Faring So Far.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. The United States Oil Fund (USO) tracks the daily movement in WTI (West Texas Intermediate) light crude oil. It rose 1.66% yesterday. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.49%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It fell 0.14% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.21 percentage points and 0.63 percentage points, respectively. SPY tracks the broader S&P 500 Index. It rose 0.07%. AMLP has returned -18.09% YTD (year-to-date), while SPY fell 4.86% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.