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Why Only 9 MLPs Ended in the Green Last Week

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Alon USA Partners

Alon USA Partners (ALDW), a downstream MLP involved in crude oil refining and refined products marketing, was the top MLP gainer last week. ALDW surged 6.5% during the week. It has gained 19.1% since the beginning of the month. ALDW’s strong recent performance could be due to its strong 3Q17 earnings and a slight correction in crude oil prices. Overall, the partnership has risen 51.3% since the beginning of this year and is among the top YTD (year-to-date) MLP gainers. For details, see Why These Ten MLPs Are Up When the Sector Is Down.

Valero Energy Partners

Valero Energy Partners (VLP) was the second-highest MLP gainer last week. VLP ended the week 1.9% higher. VLP, the midstream MLP owned by Valero Energy (VLO), has fallen 6.2% in 2017 to date. However, it’s still outperforming the Alerian MLP ETF (AMLP), which has fallen 18.6% YTD. VLP’s outperformance relative to AMLP could be due to strong earnings growth, strong distribution growth, and low commodity price exposure. VLP reported adjusted EBITDA of $78.8 million for the third quarter of 2017, which represents 18.7% YoY growth compared to the same quarter last year. The partnership declared a distribution of $0.48 per unit for 3Q17, which represents a 5.5% rise compared to the previous quarter.

CNX Coal Resources

CNX Coal Resources (CNXC), an MLP involved mainly in coal mining, was the third-highest MLP gainer last week. CNX rose 1.5% during the week. However, it’s still trading significantly below the levels it saw at the beginning of the year. It has fallen 25.5% YTD (year-to-date).

Energy Transfer Partners

Energy Transfer Partners (ETP) was the fourth-highest MLP gainer last week. ETP managed to end the week in the green despite weakness in the midstream sector. It rose 1.3% last week. ETP’s gain could be due to a bounce back from a recent correction. It has fallen 30.3% YTD. We’ll look into the technical indicators for Energy Transfer Partners (ETP) in the next part of this series.

Other top MLP gainers

Foresight Energy (FELP), Star Gas Partners (SGU), CONE Midstream Partners (CNNX), Noble Midstream Partners (NBLX), and Dominion Energy Midstream Partners (DM) were among the top MLP gainers last week with WoW (week-over-week) gains of 1.2%, 1.2%, 1.1%, 0.3%, and 0.2%, respectively.

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