Teekay Offshore Partners
Teekay Offshore Partners (TOO), an MLP involved in the marine transportation of crude oil, refined products, and NGLs (natural gas liquids), was the top MLP loser in the week ending February 2. The partnership fell 13.5% last week. Teekay Offshore Partners’ decline could be due to weakness in US markets and the US tanker industry.
Shell Midstream Partners
Shell Midstream Partners (SHLX), a midstream MLP mainly involved in crude oil and refined products logistics and terminaling, was the second-highest MLP loser last week. Shell Midstream Partners, which is a midstream subsidiary of Royal Dutch Shell (RDS-A), fell 12.1% last week. In addition to the weakness in US markets, Shell Midstream Partners’ decline could be attributed to the expected dilution from the public offering announced last week. The partnership announced two transactions last week for the sale of 36,029,412 common units valued at $980 million. The proceeds from the offering are expected to be used mainly to repay debt.
Seadrill Partners (SDLP), the MLP formed by Seadrill Limited (SDRL) to own and operate offshore drilling rigs, was the third-highest MLP loser last week. Seadrill Partners ended the week 10.8% lower. The partnership has lost 7.4% since the beginning of the year. Read Sink or Swim: Which Offshore Drillers Survived the Downturn? for a recent analysis of US offshore drillers.
Antero Midstream Partners
Antero Midstream Partners (AM), the midstream subsidiary of Antero Resources (AR), was the fourth-highest MLP loser last week. Antero Midstream Partners fell 10.8% last week. The partnership remained in the negative territory for the whole week. Antero Midstream Partners’ weakness last week could have been due to the sharp decline in natural gas prices and weakness in Utica drilling activity. According to Baker Hughes, the rig count in the region has come down to 23 as of January 26, 2018—compared to the fourth quarter average of 29. Drilling activity impacted the partnership’s gathering and water throughput volumes.