United States Oil Fund
In the last two parts, we analyzed the best and worst performing midstream MLPs on Thursday, November 19. 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 Oil Fund (USO) rose 0.69% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. In yesterday’s trade, WTI crude oil futures settled $0.21 lower, or 0.52%, at $40.54 per barrel due to concerns about the large inventory build. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 2.6%.
Most upstream MLPs, which have already lost significant market value since the rout in the energy prices, fell yesterday. They tracked the fall in crude oil prices. The top upstream MLP losers include Mid-Con Energy Partners (MCEP), Linn Energy (LINE), Vanguard Natural Resources (VNR), and Atlas Resource Partners (ARP). They fell 7.1%, 7.1%, 4.1%, and 4.10%, respectively.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. The United States Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It fell 3.70%. Natural gas futures for December delivery settled $0.07 lower, or 3%, at $2.28 per MMBtu (British thermal units in millions) as natural gas stockpiles hit a record high.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) includes 23 midstream energy MLPs. It fell 1.6% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) by 1.55 percentage points but outperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 0.95 percentage points in yesterday’s trade. SPY tracks the broader S&P 500 Index. It fell 0.09%. AMLP has returned -28.20% YTD (year-to-date). SPY rose 1.5% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.