Cone Midstream Partners Continued to Rise after Its 3Q15 Earnings



Top gainers

In the last part, we saw the top five midstream MLP losers on Wednesday, November 4. In this part, we’ll discuss the top five midstream MLP gainers on the same day.

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Cone Midstream Partners

Cone Midstream Partners (CNNX) was the top gainer among midstream MLPs at the end of trading on Wednesday, November 4. Cone Midstream Partners’ winning streak continued after its 3Q15 earnings announcement. It rose 9.5% yesterday. However, it’s still way below its price levels at the beginning of the year. It has returned -41.9% YTD (year-to-date).

Cone Midstream Partners owns and operates natural gas gathering and other midstream assets in the Marcellus Shale region. Its revenue and throughput volumes both rose by 13% compared to 2Q15. They were driven by “new well connections and the impact of debottlenecking projects coming on line.” The partnership also raised is EBITDA (earnings before interest, tax, depreciation, and amortization) and DCF (distributable cash flow) guidance for 2015.


MPLX LP (MPLX) is next on our list of the top midstream MLP gainers. It rose 4.3% yesterday. It has returned -39.2% YTD. MPLX rose 21.0% since its earnings announcement on October 29, 2015. According to its 3Q15 earnings press release, MPLX expects the merger transaction with MarkWest Energy Partners (MWE) to close this year. MPLX and MarkWest Energy generally move in tandem since their merger announcement. MarkWest Energy fell 1.0% 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 gainers

The next three MLPs on the list of the top five midstream MLP gainers on November 4 are Rice Midstream Partners (RMP), Spectra Energy Partners (SEP), and Phillips 66 Partners (PSXP). They rose 2.6%, 2.3%, and 0.12%, respectively. They have returned -16.4%, -20.9%, and -5.2% YTD.

The Alerian MLP ETF (AMLP) and the JPMorgan Alerian MLP ETN (AMJ) have returned -21% and -29.7% YTD. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned -18.4% YTD.


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