In this series, we’re looking at total returns generated by top midstream companies by market capitalization. Over the past five years, Oneok (OKE) has generated total returns of 125%, outperforming its peers.
Magellan Midstream Partners (MMP) generated total returns of 65%, whereas Energy Transfer Equity (ETE) generated returns of 60% over the same period. Williams Partners (WPZ) had total returns of 35%, and Enterprise Products Partners (EPD) returned 27% over the five-year period.
The above graph compares the five-year returns of the select companies. The Energy Select Sector SPDR ETF (XLE) generated total returns of 6%, whereas the Alerian MLP Total Returns Index fell 15% over the same period.
How do the returns compare?
The following interesting points are worth noting:
- Oneok generated the highest returns among the select peers over all three periods—one-year, three-year, and five-year.
- Enterprise Products Partners and Magellan Midstream Partners were the only companies, apart from Oneok, that generated positive total returns over all three periods.
- Kinder Morgan (KMI), Williams Companies (WMB), and Plains All American Pipeline (PAA) generated negative total returns over all three periods.
- The Energy Select Sector SPDR ETF generated positive total returns over the three periods, whereas the Alerian MLP Total Returns Index fell over all three periods.
So far, we’ve seen how these companies fared over the last five years. Next, let’s see where they stand today in terms of yield and expected price appreciation.