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These MLPs Rose More Than 9% in Week Ended January 5

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CVR Partners

CVR Partners (UAN), the MLP involved in the production of nitrogen fertilizers, including ammonia and urea ammonium nitrate (or UAN), was the top MLP gainer last week, which ended on January 5, 2018. It rose 23.2%, which could mainly be attributed to the sharp increase in ammonia prices.

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Archrock Partners

Archrock Partners (APLP), the MLP involved in natural gas contract compression, was the second-highest MLP gainer last week with a WoW (week-over-week) gain of 13.4%. It rose after the announcement of its acquisition by Archrock (AROC). AROC, the sponsor of APLP, has agreed to acquire all the remaining common units of the limited partnership, which it doesn’t hold currently, in an all-stock deal valued at $607 million.

Natural Resources Partners

Natural Resources Partners (NRP), which is an owner of interest in coal and soda ash operations, was the third-highest MLP gainer last week. It ended the week 12.7% higher. Despite the recent gains, NRP is still trading ~15% below the level at the beginning of last year.

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CNX Midstream Partners

CNX Midstream Partners (CNXM) (previously Cone Midstream Partners) was the fourth-highest MLP gainer last week with a WoW gain of 10.5%. CNX Resources (CNX) announced the successful completion of the acquisition of a 50% membership interest in CONE Gathering, the general partner of CNXM, from Noble Energy (NBL). Following the completion of this transaction, Cone Midstream Partners was renamed CNX Midstream Partners.

CNXM announced the amendment of its gas gathering with CNX Gas, a wholly owned subsidiary of CNX Resources. That could be the major reason behind CNXM’s rally last week. As part of the amendment, CNX will dedicate ~63,000 dry Utica acres to CNXM with a minimum well commitment of 140 wells for four years. As noted in the press release, “CNXM has agreed to a major system expansion to support production from the newly dedicated Utica areas.” The press release went on to say, “CNXM believes this will result in a higher level of confidence to support sustainable distribution growth into the future.”

Other top MLP gainers

Sanchez Midstream Partners (SNMP), NGL Energy Partners (NGL), Teekay Offshore Partners (TOO), EnLink Midstream Partners (ENLK), Western Gas Equity Partners (WGP), and Suburban Propane Partners (SPH) were among the top MLP gainers last week. WGP’s and SPH’s last week’s gains could be mainly attributed to their rating upgrades. We’ll look at last week’s ratings for MLPs in a later part of the series.

In the next part, we’ll look at last week’s top MLP losers.

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