Midcoast Energy’s Year-to-Date Returns Exceed Industry Average

Midcoast Energy Partners’ returns

Midcoast Energy Partners’ (MEP) YTD (year-to-date) total returns are -12.2%. In comparison, YTD returns for peers ONEOK Partners (OKS), Crestwood Midstream Partners (CMLP), and DCP Midstream Partners (DPM) are -12.6%, -44.5%, and -33.1%, respectively.

The YTD returns for the Alerian MLP ETF (AMLP) are -13.7%. AMLP tracks the Alerian MLP Infrastructure Index (AMZI), an index of midstream infrastructure MLPs.

The YTD returns for the broader energy sector represented by the Energy Select Sector SPDR ETF (XLE) are -17.0%. So MEP has done better than its peers and better than the industry.

Midcoast Energy’s Year-to-Date Returns Exceed Industry Average

The above graph compares YTD total returns for MEP with OKS, CMLP, DPM, and AMLP. As the graph shows, MEP’s returns saw a big improvement at the end of July when the MLP announced its second quarter results and Enbridge Energy Partners’ (EEP) support to its distributions. We’ll discuss this later in the series.

About Midcoast Energy Partners

Midcoast Energy Partners gathers, processes, transports, and markets natural gas. It also transports and markets NGLs (natural gas liquids). Midcoast Energy Partners was formed in November 2013 by Enbridge Energy Partners (EEP) to own and grow EEP’s natural gas and NGL business in the United States.

EEP owns all of MEP’s GP (general partner) units and 52% limited partner interest in MEP. Most of MEP’s assets are located in Texas and Oklahoma.

Midcoast Energy Partners has the following two operating segments:

  • Gathering, Processing, and Transportation
  • Logistics and Marketing

In this series

In this series, we’ll analyze the performance of Midcoast Energy Partners for the six quarters since its listing. The series will focus on the MLP’s key metrics, including distributable cash flow growth, distributions, coverage, yield, capital expenditure, and so on. We’ll also look at the prospects of MEP’s unit performance going forward.