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PAA and EPD Have Outperformed Their Peers in 2018


Oct. 1 2018, Updated 11:31 a.m. ET

Price performance

Plains All American Pipeline (PAA) has risen ~14% in 2018 and outperformed its MLP peers. Enterprise Products Partners (EPD) has risen 8%. The Alerian MLP ETF (AMLP) has fallen ~3%. Crude oil prices have risen ~19% during the same period. Energy Transfer Equity (ETE) has fallen ~1%, while MPLX (MPLX) has fallen ~4% YTD (year-to-date).

The above graph compares the prices of the top MLPs in 2018. Magellan Midstream Partners (MMP) has fallen ~4% in 2018. The Alerian MLP Index has risen ~1% YTD. Plains All American’s outperformance is likely due to stronger oil prices, which impact the MLP’s performance.

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Enterprise Products Partners’ outperformance

Enterprise Products Partners has outperformed the Alerian MLP Index in 2018. A contributing factor could have been the conservative financial profile—a key factor for investors after the distribution cuts by many MLPs over the last few years.

Plains All American Pipeline’s moving averages

Plains All American Pipeline stock has fallen ~13% from its 52-week high of $27.7 in August. The stock fell below its 50-day moving average on September 14. Plains All American Pipeline’s 200-day moving average level of ~$23.5 might act as a support for the stock in the near term. MPLX has fallen ~11% from its recent high of ~$38.7 in August.

Next, we’ll discuss analysts’ recommendations for these selected stocks.


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