Sprague Resources (SRLP), an MLP involved mainly in natural gas distribution in the US Northeast and Mid-Atlantic regions, was the top MLP loss in the week ending June 15. Sprague Resources fell 8.9% last week. Sprague Resources’ decline could be attributed to the explosion at TransCanada’s (TRP) 1.3 billion cubic feet per day Leach XPress pipeline on June 7. The pipeline operator declared a force majeure. The shutdown is expected to impact natural gas supplies from the Northeast region.
NuStar GP Holdings
NuStar GP Holdings (NSH), NuStar Energy’s (NS) general partner, was the second-highest MLP loss last week. NuStar GP Holdings fell 7.9%. NuStar Energy was also among the top MLP losses. NuStar Energy lost 7.4%. Last week, NuStar GP Holdings and NuStar Energy’s decline could be attributed to weakness in crude oil prices and some profit-booking following strong gains in recent weeks. Overall, NuStar GP Holdings and NuStar Energy have lost 18.2% and 21.6% since the beginning of 2018, respectively.
USA Compression Services
USA Compression Services (USAC), an MLP involved in contract natural gas compression services, was the third-highest MLP loss last week. USA Compression Services ended 7.7% lower last week. USA Compression Services generally has a strong correlation with crude oil prices due to the partnership’s strong dependence on production activity for throughput volumes. Overall, USA Compression Services has gained 2.2% year-to-date. To learn more about US compression services companies, read USAC, CCLP: Compression Services Companies’ Rise in 2018.
Other top MLP losses
Martin Midstream Partners (MMLP), Crestwood Equity Partners (CEQP), Shell Midstream Partners (SHLX), DCP Midstream (DCP), Noble Midstream Partners (NBLX), and Boardwalk Pipeline Partners (BWP) were among the top ten MLP losses last week.
Next, we’ll discuss the top MLP gainers last week.