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Midcoast Energy Partners: Top Midstream MLP Gainer on September 3

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Top gainers

Midcoast Energy Partners (MEP) was the top gainer among midstream MLPs at the end of trading on Thursday, September 3. It rose 3.18% yesterday.

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Midcoast Energy Partners

With yesterday’s gain, Midcoast Energy Partners’ YTD (year-to-date) returns improved to -17.03%. The company was formed by Enbridge Energy Partners (EEP) to own and grow its natural gas and NGL (natural gas liquid) midstream business in the US. Both of the partnerships are part of Enbridge (ENB). Currently, Midcoast Energy Partners operates the following two businesses:

  • natural gas gathering, processing, and transportation
  • logistics and marketing

Targa Resources Partners

Targa Resources Partners (NGLS) is next on our list of the top midstream MLP gainers. It rose 2.42% yesterday. However, Targa Resources Partners has lost 34.65% of its market value since the beginning of this year. The rout in its market performance can be attributed to its natural gas and NGL exposure. For a detailed overview of Targa Resources Partners’ commodity price exposure, read An Investor’s Guide to Targa Resources.

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Other gainers

The next three MLPs on the list of the top five midstream MLP gainers on September 3 are Enable Midstream Partners (ENBL), Summit Midstream Partners (SMLP), and Williams Partners (WPZ). The rose 1.98%, 1.84%, and 1.59%, respectively. Williams Partners has rallied for the last three trading sessions due to the announcement of a major expansion project being placed into service. According to a press release, Williams Partners “has placed into service a major expansion of its Transco natural gas pipeline to fuel new electric-power generation in Virginia and serve increasing local distribution demand in North Carolina.”

The Alerian MLP ETF (AMLP) fell 0.14% while the Yorkville High Income MLP ETF (YMLP) rose 0.24% yesterday. Together, Targa Resources Partners and Williams Partners account for ~11.31% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.49% on the same day.

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