Legacy Reserves (LGCY), an upstream MLP involved in crude oil, natural gas, and NGLs (natural gas liquids) production, was the top MLP gainer in the week ending June 22. Legacy Reserves rallied 14.3% due to strong crude oil prices ahead of OPEC’s meeting and the sharp rise in crude oil prices following OPEC’s meeting. The partnership is expected to benefit from the narrowing of the WTI Cushing-WTI Midland spread last week, which we discussed in the previous part. Overall, Legacy Reserves has gained 337.9% since the beginning of this year.
Viper Energy Partners
Viper Energy Partners (VNOM), a royalty and mineral interest owner MLP, was the second-highest MLP gainer last week. Viper Energy Partners rose 13.2%. Similar to Legacy Reserves, Viper Energy Partners’ gains last week could be due to the increase in crude oil prices and the narrowing of the spread. The partnership has direct exposure to crude oil prices. Overall, Viper Energy Partners has risen 28.4% since the beginning of this year.
Cheniere Energy Partners Holdings
Cheniere Energy Partners Holdings (CQH), a subsidiary of Cheniere Energy (LNG), was the third-highest MLP gainer last week. Cheniere Energy Partners Holdings ended the week 10.3% higher. Cheniere Energy Partners Holdings rallied following the announcement of the simplification transaction. Cheniere Energy has agreed to acquire all of Cheniere Energy Partners Holdings’ remaining outstanding common shares in an all-stock deal. According to the merger terms, each Cheniere Energy Partners Holdings common shareholder would receive 0.4750 shares of Cheniere Energy.