EV Energy Partners
Upstream MLPs including EV Energy Partners (EVEP), Mid-Con Energy Partners MCEP), and Legacy Reserves (LGCY) led the MLP top gainers in the week ending November 3. EV Energy Partners and Mid-Con Energy Partners were the top two MLP gainers last week. EV Energy Partners rose 82.4%, while Mid-Con Energy Partners rose 26.3%. Legacy Reserves was on the top ten list with a week-over-week gain of 4.5%.
Upstream MLPs’ rally last week could be due to strong crude oil prices. However, the upstream MLPs are still trading significantly below the levels at the beginning of the year. EV Energy Partners, Mid-Con Energy Partners, and Legacy Reserves have lost 47.8%, 51.9%, and 24.1% YTD (year-to-date). A crude oil correction, which seems likely, could erode these gains due to their weak liquidity position and high leverage.
CVR Refining (CVRR), the downstream MLP involved in crude oil refining and refined products marketing, was the third-highest MLP gainer last week. The partnership rose 15.7% during the week. Last week, CVR Refining’s gains could mainly be attributed to its strong 3Q17 earnings results. To learn more, read CVR Refining Reported Strong 3Q17 Results, Stock Rose 11%.
Calumet Specialty Products Partners (CLMT) and Alon USA Partners LP (ALDW), which are also involved in downstream activities, joined CVR Refining in last week’s rally. They were among the top MLP gainers. Calumet Specialty Products Partners and Alon USA Partners rose due to the expectation of strong numbers. They ended the week 13.9% and 8.2% higher, respectively.
Other top MLP gainers
Terra Nitrogen (TNH), Sanchez Production Partners (SPP), Navios Maritime Midstream Partners (NAP), and Cheniere Energy Partners LP Holdings (CQH) were among the top ten MLP gainers last week with week-over-week gains of 14.0%, 11.3%, 5.4%, and 4.8%, respectively.
In the next part, we’ll discuss last week’s top MLP losers.