ONEOK Partners: Top Midstream MLP Loser on October 29



Top losers

In the last part, we saw the top five midstream MLP gainers on Thursday, October 29. In this part, we’ll discuss the top five midstream MLP losers on the same day.

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ONEOK Partners

ONEOK Partners (OKS) was the top loser among midstream MLPs at the end of trading on Thursday, October 29. It fell 3% yesterday. At the same time, ONEOK Partners’ general partner, ONEOK (OKE) rose 0.77%. ONEOK Partners gathers, processes, and transports natural gas and NGLs (natural gas liquids). It also stores and distributes NGLs. ONEOK Partners is expected to release its 3Q15 earnings report on November 3, 2015. For a pre-earnings analysis of ONEOK Partners’ 3Q15 earnings, read Outlook for ONEOK Partners’ 3Q15 Earnings Release on November 3.

Targa Resources Partners

Targa Resources Partners (NGLS) is next on our list of the top five midstream MLP losers on October 29. It fell 2.5% yesterday. With yesterday’s loss, its YTD (year-to-date) returns fell to -38.1%. The rout in Targa Resources Partners’ market performance is due to its natural gas and NGL exposure.

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Other losers

Energy Transfer Partners (ETP), EnLink Midstream Partners (ENLK), and Holly Energy Partners (HEP) were among the top five midstream MLP losers on Thursday, October 29. They fell 0.79%, 0.77%, and 0.58% in the last trading session, respectively. They have returned -32.3%, -42.2%, and 13.7% YTD, respectively.

Holly Energy Partners’ solid YTD performance is due to its strong annual distribution growth guidance and recent rating upgrades. Recently, it gave a distribution growth guidance of 8% for 2015–2017. Holly Energy Partners was formed by HollyFrontier (HFC) to provide petroleum product and crude oil transportation, terminaling, storage, and throughput services to the petroleum industry.

The Alerian MLP ETF (AMLP) and the Yorkville High Income MLP ETF (YMLP) have returned -23.2% and -40.1% YTD. Together, Targa Resources Partners, ONEOK Partners, and Energy Transfer Partners account for 17.2% of AMLP. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned -23.5% YTD.


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