United States Natural Gas Fund
In the previous two articles of this series, we analyzed the best- and worst-performing midstream MLPs (master limited partnerships) on Thursday, November 5. To put those movements into context, we’ll analyze the performance of energy-related ETFs and upstream MLPs on the same day in this article.
The United States Natural Gas Fund (UNG), which tracks daily movements in natural gas futures, rose 4.6% yesterday. Natural gas saw its biggest one-day rise since June on colder weather forecasts and a less-than-expected increase in natural gas inventories. Lower temperatures drive natural gas demand. Natural gas futures for December delivery settled 10.2 cents lower, or 4.5% lower, at $2.36 per MMBtu (million British thermal units). For context, consider that the upstream energy company–heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.41%.
Most upstream MLPs, which have already lost significant market value since the rout in energy prices, fell yesterday, tracking the decline in crude oil prices. The United States Oil Fund (USO), which tracks the daily movement in WTI (West Texas Intermediate) light crude oil, fell 2.49%.
The biggest upstream MLP losers of the day include EV Energy Partners (EVEP), Atlas Resource Partners (ARP), Legacy Reserves (LGCY), and Memorial Production Partners (MEMP). EVEP, ARP, LGCY, and MEMP fell 14.3%, 10.2%, 5.4%, and 2.1%, respectively.
Alerian MLP ETF
The Alerian MLP ETF (AMLP), which comprises 23 midstream energy MLPs, fell 0.87% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) by 0.77 percentage points but outperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 1.6 percentage points in yesterday’s trade. SPY, which tracks the broader S&P 500 index, fell 0.10%. AMLP has returned -21.7% year-to-date while SPY is up 2.2% over this timeframe.
For more company and industry analysis on master limited partnerships, visit our Master Limited Partnerships page.