Alliance Holdings GP (AHGP), which owns the GP (general partner) of Alliance Resource Partners (ARLP), was the top MLP gainer in the week ending August 4, 2017. AHGP rose 10.9% last week mainly due to the distribution increase of 32.7%. AHGP increased its quarterly distribution after the elimination of IDRs (incentive distribution rights) from ARLP’s capital structure and the conversion of the economic GP (general partner) interest to non-economic GP interest. In return, AHGP will receive 56.1 million common units from ARLP. Incentive distribution rights entitle its holder a higher share of incremental distributions.
Hi-Crush Partners (HCLP) was the second-highest MLP gainer in the week ending August 4. The frac-sand producer rose 10.2% during the week driven by its strong 2Q17 earnings results and distribution growth resumption announcement. For details, read Hi-Crush Partners Posts Strong 2Q17 Results.
Legacy Reserves (LGCY), which is one of the few surviving upstream MLPs, was the third highest MLP gainer last week. LGCY rose 9.8% after it announced the amendment of its JDA (joint development agreement) with TSSP (TPG Sixth Street Partners) during its 2Q17 earnings. LGCY and TSSP entered a JDA during 2015 to jointly develop Legacy Reserves’ Permian acreage.
According to Paul Horne, LGCY’s CEO, “We are pleased to announce our acceleration payment and amended development agreement. Our horizontal Permian development has been a big success for both us and TSSP. As a result of the amended development agreement, we are able to increase our exposure to this highly-profitable resource, thereby allowing for a meaningful production growth program for the benefit of our equity holders that is expected to positively impact financial leverage ratios over time.”
Alon USA Partners
Alon USA Partners (ALDW), an MLP involved mainly in crude oil refining, rose 4.8% last week on a strong distribution growth announcement. For details, read Alon USA Partners Announces Higher 2Q17 Distributions.