Boardwalk Pipeline Partners (BWP), a midstream MLP (master limited partnership) mainly involved in natural gas and NGL (natural gas liquids) transportation and storage, is among Credit Suisse’s top MLP picks. The other five include Antero Midstream Partners (AM), EQT Midstream Partners (EQM), MPLX LP (MPLX), Tallgrass Energy Partners (TEP), and Williams Companies (WMB).
In this series, we’ll do an in-depth analysis of BWP, comparing it with peers, and try to decide whether BWP could gain upward momentum from where it stands today. Let’s start with BWP’s recent market performance.
Boardwalk Pipeline Partners’ market performance
BWP, which saw a YTD (year-to-date) low of $16.7 during the crash (after crude oil prices fell below $43 per barrel), has recovered slightly since then. The partnership has risen 6.6% from its YTD lows, while the Alerian MLP ETF (AMLP), which consists of 25 energy MLPs, has gained 7.1%.
BWP’s fall, despite its low commodity price exposure, can be attributed to general selling in the midstream sector and to investor concerns over a decline in natural gas production with the decline of prices. Any decline in natural gas production can impact the partnership’s throughput volumes.
Boardwalk Pipeline’s shares have remained in positive territory for most of 2017. This reflects BWP’s low commodity price exposure and natural gas focused strategy. The partnership has gained 2.8% since the beginning of 2017. By comparison, EQT Midstream Partners (EQM) and Spectra Energy Partners (SEP) have lost 2.6% and 4.1% in 2017, respectively, while Williams Partners (WPZ) has gained 3.9%.