United States Oil Fund
In the last two parts, we analyzed the best and worst performing midstream MLPs on Monday, September 21. 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) rose 2.94% 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 $2 higher, or 4.48%, at $46.68 per barrel. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.31%.
Most cash-strapped upstream MLPs, that have already lost significant market value since the rout in the energy prices, fell yesterday due to the fall in natural gas future prices. Yesterday, natural gas prices fell to nearly a five-month low due to concerns about the seasonal fall in natural gas demand. The United States Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It fell 1.38%.
The top upstream MLP losers include Vanguard Natural Resources (VNR), Mid-Con Energy Partners (MCEP), Memorial Production Partners (MEMP), and EV Energy Partners (EVEP). They fell 5.38%, 4.98%, 3.98%, and 2.76%, 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.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 23 midstream energy MLPs. It rose 0.65% yesterday. AMLP outperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.13 percentage points and 0.34 percentage points in yesterday’s trade, respectively. SPY tracks the broader S&P 500 Index. It rose 0.52% yesterday. AMLP has returned -20.43% YTD (year-to-date), while SPY fell 4.42% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.