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Which MLPs Rose More than 6% Last Week?

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Seadrill Partners

Seadrill Partners (SDLP), an MLP involved mainly in offshore drilling, continued to be among the top MLP gainers for the second consecutive week. It rose 14.4% in the week ending August 25. The partnership has risen 22.3% in August. However, it’s still trading below the levels at the beginning of 2017. Seadrill Partners’ recent rally could be attributed its announcement about resuming distribution and amendments to its secured credit facilities.

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EV Energy Partners

EV Energy Partners (EVEP) recovered slightly last week after being the top MLP loser in the previous two weeks. The upstream MLP rose 13.9% to $0.5 per unit. However, it has lost 78.5% since the beginning of 2017 due to weak earnings, prolonged weakness in energy prices, and its weak liquidity position. EV Energy Partners and other upstream MLPs’ survival isn’t certain.

EQT GP Holdings

EQT GP Holdings (EQGP), EQT Midstream Partners’ (EQM) general partner, was the third-highest MLP gainer last week. EQT GP Holdings rose 8.1% in the week ending August 25. It depends on EQT Midstream Partners for distribution income. EQT GP Holdings has risen 11.1% since the beginning of 2017. EQT GP Holdings is targeting an annual distribution growth of 30%–40% for 2017.

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Valero Energy Partners

Valero Energy Partners (VLP) is an MLP that was formed by one of largest US crude oil refiners—Valero Energy (VLO). Valero Energy Partners was the fourth-highest MLP gainer last week. It rose 6.6% during the week. Last week, it rose mainly due to its ratings upgrade by Jefferies to a “buy.”

Plains All American Pipeline

Plains All American Pipeline (PAA) and its general partner Plains GP Holdings (PAGP) were also among the top MLP gainers last week. They both rose ~6.2%. Plains All American Pipeline and Plains GP Holdings’ gains last week might have been due to a rating upgrade by Jefferies. Also, Plains All American announced its plans to reduce its debt by $1.4 billion over a six-month period mainly through distribution cuts. It plans to finance the capex for 2H17 through asset sales and equity issuance.

Other top MLP gainers

Blueknight Energy Partners (BKEP), NuStar GP Holdings (NSH), Tallgrass Energy (TEGP), and Hi-Crush Partners (HCLP) were among the top MLP gainers last week. Four out of the top ten MLPs gainers were limited partnerships’ general partners, which might be due to an overcorrection in some of these high distribution growth stocks during the first three weeks of the month.

In the next part, we’ll look at the top MLP gainers last week.

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