ONEOK Partners: 2015 Returns Exceed MLP Average



ONEOK Partners’ returns exceed MLP average

ONEOK Partners (OKS) has generated a return of -11.7% since the start of 2015. Over the same period, peers Enbridge Energy Partners (EEP), Kinder Morgan (KMI), and Targa Resources Partners (NGLS) have generated returns of -27.4%, -27.1%, and -30.0%, respectively.

The Alerian MLP ETF’s (AMLP) returns year-to-date are -19.9%. The broader market SPDR S&P 500 ETF (SPY) has returned 1.3% since the beginning of 2015. Over the same period, the Energy Select Sector SPDR ETF (XLE) has generated a total return of -11.7%. Low energy prices have dragged down the energy sector’s returns in 2015.

The above graph shows the total returns for OKS, EEP, KMI, NGLS, and AMLP since the start of 2015. OKS has outperformed its peers and AMLP so far in 2015. One reason for this is that OKS unit prices dipped more in December 2014, resulting in relatively higher returns for 2015 as units recovered.

Over the last one-year period, OKS returns were -34%, lower than -24% for AMLP during the same period. One-year returns for EEP, KMI, and NGLS are -22%, -21%, and -48%, respectively.

ONEOK Partners gathers, processes, and transports natural gas and NGLs (natural gas liquids). It also stores and distributes NGLs. To learn more about OKS, read our series An Energy Investor’s Guide to ONEOK Partners.

American Midstream Partners (AMID) and Boardwalk Pipeline Partners (BWP) are other MLPs involved in natural gas gathering and processing.

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What we’ll cover in this series

In this series, we’ll take a look at ONEOK Partners’ revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) estimates for the third quarter of 2015. We’ll also look at the contribution of various segments to the company’s earnings, its distribution guidance, and analysts’ recommendations for the MLP ahead of its earnings release on November 3, 2015. This should help you make informed decisions about your investment in ONEOK Partners.


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