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Top MLP Gainers in the Week Ending March 2

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Legacy Reserves

In the week ending March 2, 2018, Legacy Reserves (LGCY), an upstream MLP involved in crude, natural gas, and NGLs (natural gas liquids) production, was the top MLP gainer for the second consecutive week. Legacy Reserves shares jumped 20.9% last week. The rally last week could be due to gains in natural gas prices and strong positive momentum following the fourth quarter earnings announcement. Overall, Legacy Reserves has risen 74.2% in the last two weeks and 147.8% since the beginning of the year.

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Legacy Reserves posted 7% YoY production growth in 4Q17—compared to the previous quarter. For fiscal 2017, the partnership’s adjusted EBITDA increased 45%, which reduced the net debt-to-EBITDA multiple by 2.1x during the year. The partnership updated its 2018 guidance. The partnership expects the adjusted EBITDA to be $300 million–$360 million, which at the midpoint represents a 45.9% YoY increase compared to 2017.

SunCoke Energy Partners

SunCoke Energy Partners (SXCP), an MLP involved in the coke making and logistics business, was the second-highest MLP gainer last week. SunCoke Energy Partners rose 6.1% last week. The partnership has gained 10.3% since the beginning of the year. SunCoke Energy Partners’ recent rally could be attributed to the US government’s expected boost to the US steel industry through an increase in US tariffs on steel imports. SunCoke Energy Partners’ coke sales and logistics throughput volumes could benefit from higher domestic steel production. The partnership expects a flat or slightly lower adjusted EBITDA guidance for 2018 of $215 million–$225 million. SunCoke Energy Partners reported an adjusted EBITDA of $221.3 million for fiscal 2017.      

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Sanchez Midstream Partners

Sanchez Midstream Partners (SNMP), a midstream MLP manly involved in natural gas gathering, processing, and compression, was the third-highest MLP gainer last week. Sanchez Midstream Partners rose 4.6%. The partnership, which has a strong Eagle Ford focus, has risen 10.3% in 2018.

Other top MLP gainers

Natural Resource Partners (NRP), DCP Midstream (DCP), Navios Maritime Midstream Partners (NAP), Southcross Energy Partners (SXE), Shell Midstream Partners (SHLX), EQT Midstream Partners (EQM), and Genesis Energy (GEL) were among the top MLP gainers last week.

Next, we’ll discuss Plains All American Pipeline’s (PAA) technical indicators.

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