United States Oil Fund
In the last two parts, we analyzed the best and worst performing midstream MLPs on Tuesday, September 22. 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 0.86% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. In yesterday’s trade, WTI crude oil for October delivery settled $0.85 lower, or 1.80%, at $45.83 per barrel due to concerns about the weak outlook for energy demand. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.48%.
Most cash-strapped upstream MLPs, that have already lost significant market value since the rout in the energy prices, fell yesterday. They tracked the slight fall in crude oil prices. The top upstream MLP losers include Legacy Reserves (LGCY), Linn Energy (LINE), Mid-Con Energy Partners (MCEP), and BreitBurn Energy Partners (BBEP). They fell 9.77%, 7.27%, 7.12%, and 5.06%, respectively. For an in-depth analysis of 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 the daily movements in natural gas futures. It fell 0.33%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 23 midstream energy MLPs. It fell 1.72% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.42 percentage points and 0.24 percentage points in yesterday’s trade, respectively. SPY tracks the broader S&P 500 Index. It fell 1.30% yesterday. AMLP has returned -21.80% YTD (year-to-date), while SPY fell 5.66% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.