United States Oil Fund
In the last two parts in this series, we analyzed the best and worst performing midstream MLPs on Thursday, September 17. 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 0.85% 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 $0.25 lower, or 0.50%, at $46.9 per barrel. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 0.68%.
Most cash-strapped upstream MLPs, that have already lost significant market value since the rout in the energy prices, rose yesterday. The likely rose due to the Fed’s announcement that it won’t raise the interest rates. The top upstream MLP gainers include Memorial Production Partners (MEMP), Eagle Rock Energy Partners (EROC), Mid-Con Energy Partners (MCEP), and Legacy Reserves (LGCY). They rose 3.35%, 6.80%, 5.51%, and 4.68%, 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 0.40%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 23 midstream energy MLPs. It rose 0.14% yesterday. AMLP outperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.36 percentage points and 0.82 percentage points in yesterday’s trade, respectively. SPY tracks the broader S&P 500 Index. It fell 0.22% yesterday. AMLP has returned -20.72% YTD (year-to-date), while SPY fell 2.82% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.