CSI Compressco (CCLP), the MLP mainly involved in natural gas compression, was the highest MLP loser last week ending November 3, 2017. USAC fell 7.8% during the week. The partnership has lost 12.6% in the past two weeks. Its recent decline could be attributed to the recent fall in drilling activity. The demand for compression service is linked to the level of drilling activity. We discussed recent US drilling activity in Part 1 of this series. Overall, CSI Compressco has lost 51.5% in 2017 to date.
Southcross Energy Partners
Southcross Energy Partners (SXE), the midstream MLP mainly involved in natural gas gathering and processing, NGL (natural gas liquid) fractionation, and NGL transportation, was the second-highest MLP loser last week. SXE fell 7.7% last week. However, SXE rose 4.3% on Friday after American Midstream Partners (AMID) announced its acquisition. American Midstream Partners has agreed to certain assets of Southcross Holdings—the general partner of the limited partnership. Together, the two transactions are valued at $815 million. Southcross Energy Partners would merge into a wholly owned subsidiary of American Midstream Partners after the merger is complete.
NuStar Energy (NS), the MLP involved in crude oil, refined products, and NGL transportation and terminaling, was the third-highest MLP loser last week. NuStar Energy fell 7.0% during the week. The partnership has lost 21.2% since the beginning of last month. Its recent weak performance could be mainly due to weakness in the Eagle Ford drilling activity. According to a recent rig report by Baker Hughes, the rig count in the Eagle Ford region fell to 65 by end of the week ending October 27, 2017—compared to 68 by the end of the third quarter. However, it remained unchanged by the end of the week ending November 3. NuStar Energy has high exposure to the Eagle Ford region. It’s impacted negatively by a decline in the Eagle Ford’s drilling activity.
Other top MLP losers
Natural Resource Partners (NRP), Capital Product Partners (CPLP), Antero Midstream Partners (AM), Hoegh LNG Partners (HMLP), Gaslog Partners (GLOP), Star Gas Partners (SGU), and Tesoro Logistics (TLLP) were among the top ten MLPs losers last week. In the next part, we’ll discuss the technical indicators for American Midstream Partners.