Ferrellgas Partners (FGP) was the top MLP loser in the week ending January 12, 2017. The partnership ended the week 11.5% lower. Its weakness last week, despite strong propane demand and propane prices, could be attributed to its rating downgrade and downward target price revision by Citigroup.
Ferrellgas Partners has lost 52.1% in the past year. It could be attributed to Ferrellgas Partners’ rising leverage, distribution cuts, and weakness in its midstream business. Another propane MLP, Suburban Propane Partners (SPH) was among the top MLP losers last week. It fell 3.0% last week. However, Suburban Propane Partners continues to trade in the positive territory in 2018.
Sprague Resources (SRLP), an MLP involved in wholesale marketing and distribution of natural gas and refined products, was the second-highest MLP loser last week—it fell 2.5%. Sprague Resources has lost 7.8% in the past year. Sprague Resources’ weak market performance could be attributed to its weak operating performance. Sprague Resources reported an adjusted EBITDA of $14.0 million in 3Q17—compared to $19.3 million in 3Q16. Its adjusted EBITDA fell 27.1% YoY (year-over-year).