Noble Midstream Partners
Noble Midstream Partners (NBLX), Western Gas Equity Partners (WGP), and DCP Midstream Partners (DCP) were among the top MLP gainers in the week ending October 5. Oil and gas companies’ steps to fight Proposition 112 on the Colorado ballot likely made some investors optimistic about the companies’ futures. Noble Midstream Partners, Western Gas Equity Partners, and DCP Midstream Partners gained 14%, 8.4%, and 7.8%, respectively, last week. Even after last week’s gains, the three stocks have fallen 19%, 17%, and 12%, respectively, YTD (year-to-date).
Western Gas Partners (WES) rose 4.9% for the week. Noble Midstream Partners, Western Gas Equity Partners, and DCP Midstream Partners will likely be impacted significantly if Proposition 112 gets passed. The stocks might experience volatile trade until the election in November.
Proposition 112 requires that new oil and gas development in Colorado be at a minimum distance of 2,500 feet from “vulnerable” areas like homes, schools, or hospitals—compared to the current requirement of 500 feet.
Summit Midstream Partners (SMLP), Valero Energy Partners (VLP), and Genesis Energy (GEL) gained 5.7%, 5.6%, and 5.3%, respectively. Valero Energy Partners has fallen ~13% YTD, while Summit Midstream Partners has fallen 31% YTD. Genesis Energy has risen 8% YTD.
Spectra Energy Partners (SEP) and Enbridge Energy Management (EEQ) were among the top gainers. The two companies are expected to complete the merger with parent Enbridge (ENB) in the fourth quarter. The above graph shows the ten MLP and midstream stocks that gained the most last week.
Next, we’ll discuss the MLPs and midstream companies that fell the most last week.