United States Natural Gas Fund
In the last two parts, we analyzed the best and worst performing midstream MLPs on Friday, November 20. To put those movements into context, we’ll analyze the performance of energy-related ETFs and upstream MLPs on the same day.
The United States Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It fell 4.2% on Friday. The natural gas futures for December delivery settled $0.13 lower, or 5.8%, at $2.15 per MMBtu (British thermal units in millions) due to concerns about growing natural gas stockpiles. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 2.30%.
Most upstream MLPs, which have already lost significant market value since the rout in the energy prices, fell. They tracked the fall in crude oil and natural gas prices. The United States Oil Fund (USO) tracks the daily movement in WTI (West Texas Intermediate) light crude oil. It fell 0.23% on Friday.
The top upstream MLP losers include Legacy Reserves (LGCY), Memorial Production Partners (MEMP), Vanguard Natural Resources (VNR), and Linn Energy (LINE). They fell 8.3%, 7.9%, 6.0%, and 4.3%, respectively.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) includes 23 midstream energy MLPs. It fell 2.5% on Friday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 2.82 percentage points and 0.16 percentage points in Friday’s trade, respectively. SPY tracks the broader S&P 500 Index. It rose 0.36%. AMLP returned -30% YTD (year-to-date). SPY rose 1.8% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.