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Downstream MLPs among Top MLP Gainers Last Week

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Calumet Specialty Products Partners

US downstream MLPs, including Calumet Specialty Products Partners (CLMT), Alon USA Partners (ALDW), and CVR Refining (CVRR), were among the top five MLP gainers last week, which ended September 1, 2017. US refineries that don’t have much exposure in the US Gulf Coast rallied last week due to the surge in gasoline prices and their uninterrupted operations while nearly all the refineries in the Gulf Coast were temporarily shut down due to Hurricane Harvey. CLMT, ALDW, and CVRR rose 28.2%, 16.7%, and 15.0%, respectively, with CLMT being the top MLP gainer.

CLMT has risen a massive 110.0% since the beginning of this year. It recently saw another massive rally after it announced the sale of its refinery business. For details, read Calumet’s Superior Refinery Sale: A Step in the Right Direction?

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Arc Logistics Partners

Arc Logistics Partners (ARCX), the MLP involved in crude oil and refined products terminaling, transportation, and logistics, was the third-highest gainer last week, rising 15.2%. ARCX stock rallied last week following its announcement to merge with Zenith Energy, a portfolio company of Warburg Pincus. Zenith Energy has agreed to acquire the GP (general partner) of ARCX, Arc Logistics GP, and all of ARCX’s outstanding common stock. Under the merger terms, each ARCX shareholder would receive $16.50 per common share in cash.

Plains All American Pipeline

Plains All American Pipeline (PAA) and its GP Plains GP Holdings (PAGP) continue to be among the top MLP gainers for the second consecutive week. They rose 8.2% and 7.4%, respectively, last week. PAA’s and PAGP’s recent surge could be attributed to the bounce back from overcorrection following the distribution cut announcement and recent rating upgrades. PAA and PAGP saw two ratings upgrades last week. We’ll look more into this in a later part of this series.

Other top MLP gainers

Golar LNG Partners (GMLP), EnLink Midstream Partners (ENLK), Mid-Con Energy Partners (MCEP), and Enable Midstream Partners (ENBL) were among the top MLP gainers last week with WoW (week-over-week) gains of 7.8%, 7.3%, 7.1%, and 6.9%, respectively. ENLK and ENBL recovered from their year-to-date lows following last week’s gains. However, they are still trading far below the levels at the beginning of 2017.

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