Crestwood Equity Partners (CEQP) was the best performer among midstream MLPs at the end of trading on Wednesday, October 28. It rose 8% in a single trading session.
Crestwood Equity Partners
However, Crestwood Equity Partners lost 66.5% of its equity value since the beginning of this year. Its poor market performance is due to stagnant distribution growth at Crestwood Midstream. Before the merger, Crestwood Equity Partners used to derive its earnings from IDRs (Incentive Distribution Rights) and GP (general partner) interest in Crestwood Midstream. For an in-depth analysis of Crestwood Midstream’s recent operating performance, read Crestwood Midstream’s 2Q15 Results: Highlights for Investors.
MPLX LP (MPLX) is next on our list of the top midstream MLP performers. MPLX rose 6.9% yesterday. It has returned -52.1% YTD (year-to-date). MPLX and MarkWest Energy Partners (MWE) have moved in tandem since their merger announcement. MarkWest Energy rose 6.3% yesterday. Traders take advantage of any discrepancy in the swap ratio dictated prices. For an in-depth analysis of the MarkWest Energy-MPLX merger, read Key for Investors: Analyzing the MarkWest-MPLX Merger.
Other best performers
The next two stocks on the list of the top five midstream MLP performers on October 28 were DCP Midstream Partners (DPM) and EQT Midstream Partners (EQM). They rose 6.3% and 5.9%, respectively. They have returned -39.5% and -18.2% YTD.
The Alerian MLP ETF (AMLP) and the Global X MLP & Energy Infrastructure ETF (MLPX) rose 4.2% and 2.7% yesterday. Together, DCP Midstream Partners, MarkWest Energy Partners, and EQT Midstream Partners account for 11.9% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 3.7% on the same day.