7 MLPs That Have Generated Handsome Returns in 2018



The top MLPs

Even though MLP returns have been almost flat so far in 2018, there are some MLPs that have generated handsome returns year-to-date. In this series, we’ll look at the top MLPs this year. We’ll also see analysts’ future expectations for them.

Here are the top three MLP gainers year-to-date:

The above chart shows the top MLPs by year-to-date returns. It doesn’t include shipping and coal MLPs. Dorchester Minerals (DMLP) and Crestwood Equity Partners (CEQP) follow CVRR in the top year-to-date returns.

We won’t be covering Mid-Con Energy Partners and Cypress Energy Partners (CELP) since both of them have market capitalizations less than $100 million.

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VNOM rose 40% in 2018

Viper Energy Partners (VNOM) has risen 40% so far in 2018. The royalty interest owner MLP had its price target raised several times in May. On May 21, Simmons raised it from $33 to $38.

On May 3, UBS raised its price target for VNOM from $30 to $32, and Northland Capital raised it from $29 to $38. Stifel raised its price target from $29 to $33, SunTrust Robinson raised it from $35 to $40, and Citigroup raised it from $24 to $29. On May 2, Euro Pacific Capital raised it from $30 to $33.

Of the 14 Reuters-surveyed analysts covering Viper Energy Partners, four have rated the stock a “strong buy,” nine have rated it a “buy,” and one has rated it a “hold.” Their mean price target is $34.60, which implies an upside of 6% in a year from its current price of $32.59.

The above graph shows how analysts’ recommendations and mean price target for Viper Energy Partners have changed over the last 12 months.


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