United States Oil Fund
In the last two parts in this series, we analyzed the best and worst performing midstream MLPs on Friday, September 4, 2015. 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 Oil Fund (USO) fell 1.69% on Friday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. On Friday, WTI crude oil for October delivery settled $0.70 lower, or 1.50%, at $46.05. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.84% on the same day.
Most upstream MLPs, that have already lost significant market value since the rout in the energy prices, ended in red on Friday. They tracked the fall in crude oil and natural gas prices. Top upstream MLP losers include EV Energy Partners (EVEP), Memorial Production Partners (MEMP), Vanguard Natural Resources (VNR), and Legacy Reserves (LGCY). They rose 4.49%, 4.32%, 3.45%, and 3.35%, 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 Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It fell 2.34%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It fell 0.42% on Friday. AMLP outperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 1.09 percentage points and 1.42 percentage points in Friday’s trade, respectively. SPY tracks the broader S&P 500 Index. It fell 1.51%. AMLP has returned -18.44% YTD (year-to-date), while SPY fell 6.30% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.