Summit Midstream Partners (SMLP) was the top gainer among midstream MLPs (master limited partnerships) at the end of trading on Friday, October 9. SMLP rose 5.1% on Friday.
Summit Midstream Partners
Summit Midstream has returned -46.1% YTD (year-to-date). SMLP’s rise on Friday can be attributed to its recent rating upgrades by the analysts covering the stock. Summit Midstream Partners provides natural gas, crude oil, and produced water gathering and processing services.
Southcross Energy Partners
Next in our list of top midstream MLP gainers is Southcross Energy Partners (SXE). SXE rose 4.3% on Friday. However, SXE has lost 59.9% of its equity value since the beginning of this year. SXE’s poor YTD (year-to-date) market performance can be attributed to its significant exposure to natural gas and NGL (natural gas liquid) prices. The partnership mainly provides natural gas gathering, processing, treatment, compression, and transportation services. Apart from this, SXE is engaged in natural gas and NGL acquisition and marketing.
The next three MLPs in the list of top five midstream MLP gainers on October 9 were Antero Midstream Partners (AM), World Point Terminals (WPT), and Columbia Pipeline Partners (CPPL). AM, WPT, and CPPL rose 3.7%, 3.1%, and 2.9%, respectively. AM and WPT have returned -13.2% and -29.2% YTD, respectively. CPPL began trading in February 2015 and has since returned -44.1%.
Antero Midstream Partners (AM) provides natural gas gathering and compression services to its sponsor, Antero Resources Corporation (AR), under long-term, fixed-fee contracts. Antero Resources is Antero Midstream’s only current customer and is one of the largest producers of natural gas and NGLs in the Appalachian Basin. For an in-depth overview of AM’s performance drivers, read “Comparing 4 Midstream MLP Subsidiaries of Upstream C-Corps.”
The Alerian MLP ETF (AMLP) rose 0.21% on Friday, while the Global X MLP & Energy Infrastructure ETF (MLPX) fell 0.26%. For context, the upstream energy company-heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.6% on the same day.