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Top MLP Losers in the Week Ending November 24

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Southcross Energy Partners

Southcross Energy Partners (SXE), the midstream MLP mainly involved in natural gas gathering and processing, was the top MLP loser in the week ending November 24. It fell 7.1% during the week. The partnership has lost 11.6% in November. However, Southcross Energy Partners is still trading 25.9% above the levels at the beginning of the year.

Legacy Reserves

Legacy Reserves (LGCY), an upstream MLP, was the second-highest MLP loser last week. It ended the week 7.1% lower. Last week, Legacy Reserves’ fall could mainly be attributed to the sharp fall in natural gas prices. Natural gas fell 9.2% last week and ended at $2.8 per MMBtu (million British thermal units). Legacy Reserves has significant exposure to natural gas. Natural gas sales accounted for 38.4% of the partnership’s total revenues in 3Q17. EV Energy Partners (EVEP) and Mid-Con Energy Partners (MCEP) have low natural gas exposure. However, Mid-Con Energy Partners was still the third-highest MLP loser last week.

Plains All American Pipeline

Plains All American Pipeline (PAA) is the MLP subsidiary of Plains GP Holdings (PAGP). It’s mainly involved in crude oil transportation and terminaling. Plains All American Pipeline was the fourth-highest MLP loser last week. It saw a new 52-week low of $18.6 last week and ended the week 5.7% lower. Overall, the partnership has lost 6.5% in November. Plains All American Pipeline’s recent declines could be attributed to weakness in drilling activity in some of the regions where it operates including the Eagle Ford region. According to Baker Hughes, the crude oil rig count in the Eagle Ford region fell to 60 as of November 17, 2017—compared to 76 by the end of the second quarter. The rig count remained unchanged at the end of the week ending November 24, 2017.

Other top MLP losers

Blueknight Energy Partners (BKEP), NuStar GP Holdings (NSH), Seadrill Partners (SDLP), Enbridge Energy Partners (EEP), NuStar Energy (NS), and Ferrellgas Partners (FGP) were among the top ten MLPs losers last week. In the next part, we’ll discuss the top MLP gainers last week.

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