NGL Energy Partners
NGL Energy Partners (NGL) was the top MLP gainer last week. NGL rose 17.2% during the week due to the rally in crude oil prices. NGL’s last week’s gains could also be due to its CEO taking a new position in the stock.
NGL Energy, which has relatively high crude oil exposure through its crude oil, NGLs (natural gas liquids), and refined products marketing business, is still trading significantly below the levels we saw at the beginning of the year. It has lost 51.4% YTD (year-to-date).
Hi-Crush Partners (HCLP), the frac-sand producer, continued to rally for the second consecutive week. It rallied 14.6% last week. HCLP’s recent gains could be due to its ratings upgrade and the recent rise in crude oil prices, which is expected to further drive US drilling activity. For an in-depth analysis on HCLP and Emerge Energy Services, see HCLP, EMES: Are Frac Sand MLPs Currently Attractive?
USD Partners (USDP), which was the top MLP loser in the week ending September 8, recovered slightly last week. USDP was the third-highest MLP gainer last week. It rose 13.5% during the week. However, the partnership has lost 33.5% YTD (year-to-date). USDP’s weak YTD (year-to-date) performance could be due to weak crude by rail volumes from Canada, the expiration of a partnership’s important take-or-pay contract at the Casper terminal, and weak earnings driven by the underutilization of the Hardisty and Casper terminal facilities.
Other top MLP gainers
Ferrellgas Partners (FGP), CVR Partners (UAN), EV Energy Partners (EVEP), Tallgrass Energy GP (TEGP), Teekay Offshore Partners (TOO), Sanchez Production Partners (SPP), and Navios Maritime Midstream (NAP) were among the top MLP gainers last week. In the next part of this series, we’ll look into last week’s biggest MLP losers.