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Last Week’s Biggest Gains in the MLP Space

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NuStar GP Holdings

NuStar GP Holdings (NSH) and its limited partnership, NuStar Energy (NS), were among the top MLP gainers last week. NSH was the top MLP gainer last week with WoW (week-over-week) gains of 12.0% while NS was the sixth-biggest MLP gainer with a WoW gain of 8.6%. NS and NSH had a strong start to last week, following a massive correction. These gains eroded following the news of the FERC ruling. However, both the GP and LP recovered after it issued a public statement highlighting no material impact of the FERC ruling, which could be attributed to NS’s minimal exposure to the interstate pipeline business.

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Sprague Resources

Sprague Resources (SRLP), an MLP involved in the wholesale distribution of natural gas and other fuels, was the second-highest MLP gainer last week. It rallied 10.3%. Last week’s gains turned SRLP positive for the year. SRLP stock rallied following its strong 4Q17 earnings announcement. The partnership reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $41.9 million for the fourth quarter of 2017, compared to $30.7 million in the same quarter of the prior year, a YoY increase of 36.5%.

The company expects the strong performance to continue in 2018. According to David Glendon, SRLP’s CEO, “The closing of five acquisitions in the past year provides an expanded platform for growth in 2018 and beyond.  Combined with the return of more supportive weather in the first quarter, we’re expecting this year’s adjusted EBITDA to be in the range of $120 to $140 million.”

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Sanchez Midstream Partners

Sanchez Midstream Partners (SNMP), a midstream MLP involved in natural gas gathering, processing, and compression, was the third-highest MLP gainer last week. SNMP rose 10.0%. The partnership’s shares bounced back after a massive correction. It has risen 9.0% in 2018.

Transmontaigne Partners

Transmontaigne Partners (TLP), an MLP involved in crude oil and refined products terminaling, transportation, and storage, was the fourth-highest MLP gainer last week. TLP ended the week 9.1% higher last week. Similar to SRLP, TLP rallied following its 4Q17 earnings announcement. TLP reported EBITDA of $27 million in the fourth quarter of 2017, compared to $25.5 million in the same quarter of the previous year, representing a YoY increase of 5.9%. For 2017 overall, TLP posted 12.8% year-over-year EBITDA growth.

Other top MLP gainers

CONE Midstream Partners (CNNX), Global Partners (GLP), Westlake Chemical Partners (WLKP), Gaslog Partners (GLOP), and Dorchester Minerals (DMLP) were among the top MLP gainers last week.

In the next part of this series, we’ll look into last week’s MLP rating updates.

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