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.