OKE and ETE gained
After a 0.4% gain in the previous week, the Alerian MLP Index fell 0.5% last week. The Index is up 1.2% YTD (year-to-date), whereas on a total return basis—which includes distributions—the index is up ~7.3% YTD. In comparison, the S&P 500 Index has risen 9.6% YTD. Among the top midstream MLPs and C-corps, ONEOK (OKE) gained 4.1% last week and Energy Transfer Equity (ETE) was up 1.1%.
Crude oil prices rose 2.6% in the last week. To learn more about the latest factors affecting oil prices, see Oil Prices Pause before OPEC and Non-OPEC Members Meet. The Energy Select Sector SPDR ETF (XLE) rose 1.1% for the week. The above graph shows the performance of the top midstream stocks for the week. MPLX (MPLX) and Plains All American Pipeline (PAA) fell 2.7% and 1.5%, respectively. Kinder Morgan (KMI) was flat.
EEP and DM acquisitions
On September 18, Enbridge (ENB) announced agreements to acquire Enbridge Energy Partners (EEP), Enbridge Energy Management (EEQ), and Enbridge Income Fund Holdings (ENF). The merger was first proposed in May. Enbridge entered into an agreement to acquire Spectra Energy Partners (SEP) in August. All the transactions are expected to close in the fourth quarter of 2018.
Dominion Energy (D) offered to acquire Dominion Energy Midstream Partners (DM) on September 19. The companies expect to reach an agreement in the fourth quarter and complete the transaction in the first quarter of 2019.
Let’s next take a look at the biggest MLP and midstream gainers last week.