Top MLP Losses in the Week Ending May 18


May. 22 2018, Published 8:06 a.m. ET

Teekay Offshore Partners

Teekay Offshore Partners (TOO), an MLP mainly involved in the marine transportation of crude oil, NGLs, and refined products, was the top MLP loss in the week ending May 18. Teekay Offshore Partners fell 4.2%. Last week, the decline could be due to Teekay Offshore Partners’ weak first-quarter earnings. The partnership reported income from vessel operations of $19.5 million in the first quarter—compared to $60.5 million in the same quarter last year. The YoY decline in the income from vessel operations was mainly due to higher voyage and vessel operating expenses.

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However, management remains optimistic about the partnership’s growth prospects. According to Ingvild Sæther, Teekay Offshore Partners’ CEO, “Looking ahead, with a stronger balance sheet, market-leading positions, operational excellence and strong and supportive sponsors, we believe Teekay Offshore is well-positioned to benefit from the expected strong demand for offshore production, storage and transportation.”

CSI Compressco

CSI Compressco (CCLP), the MLP mainly involved in natural gas compression, was the second-highest MLP loss last week. CSI Compressco ended the weak 4.0% lower. The partnership was among the top MLP losses for the second-consecutive week. The recent decline in CSI Compressco could be attributed to its weak first-quarter earnings. The partnership saw a 3.5% YoY decline in its adjusted EBITDA in the first quarter. The recent decline somewhat eroded the YTD (year-to-date) gains. CSI Compressco has risen 14.4% YTD.

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Spectra Energy Partners

Spectra Energy Partners (SEP), the midstream MLP mainly involved in natural gas transportation and storage, was the third-highest MLP loss last week. Spectra Energy Partners ended the week 3.9% lower. The shares fell following Enbridge’s (ENB) announcement that it will acquire all of Spectra Energy Partners’ outstanding common units. Enbridge, which owns the general partner and limited partner interest in Spectra Energy Partners and Enbridge Energy Partners (EEP), would acquire all of the outstanding entities from both companies in an all-stock deal.

Other top MLP losses

Blueknight Energy Partners (BKEP), PBF Logistics (PBFX), Buckeye Partners (BPL), CONE Midstream Partners (CNNX), SunCoke Energy Partners (SXCP), CrossAmerica Partners (CAPL), and Gaslog Partners (GLOP) were among the top ten MLP losses last week.

Next, we’ll discuss the MLP rating updates last week.


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