United States Natural Gas Fund
In the last two parts in this series, we analyzed the best and worst performing midstream MLPs on Tuesday, September 8. 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 daily movements in natural gas futures. It rose 1.83% yesterday. On Tuesday, the US natural gas contract for October delivery settled $0.055 higher, or 2%, at $2.71 MMBtu (British thermal units in millions).
Most upstream MLPs, that have already lost significant market value since the rout in the energy prices, rose marginally. They tracked the slight rise in natural gas prices. The top upstream MLP gainers include Mid-Con Energy Partners (MCEP), Linn Energy (LINE), BreitBurn Energy Partners (BBEP), and Eagle Rock Energy Partners (EROC). They rose 5.02%, 4.52%, 3.35%, and 2.05%, 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 fell 0.40% yesterday. The upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 1.88%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It rose 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 2.37 percentage points and 1.74 percentage points, respectively. SPY tracks the broader S&P 500 Index. It rose 2.51%. AMLP has returned -18.32% YTD (year-to-date), while SPY fell 3.95% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.