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MLPs Have Outperformed Broader Markets So Far in 2019


Nov. 20 2020, Updated 4:21 p.m. ET

MLPs rise in 2019

Top MLP and midstream stocks have performed strongly so far in 2019. Stocks surged across the board with Enterprise Products Partners (EPD), Kinder Morgan (KMI), ONEOK (OKE), Williams Companies (WMB), and Energy Transfer (ET) all posting double-digit growth. The Alerian MLP Index, a benchmark index for energy MLPs, has risen more than 10% year-to-date. In comparison, the Energy Select Sector SPDR ETF (XLE), which tracks the broader energy sector, has risen ~8%.

Plains All American Pipeline (PAA) has risen ~18% year-to-date. Midstream stocks have outperformed broader markets, which have risen ~4.2% year-to-date. The above graph compares the performance of top midstream stocks with the Alerian MLP Index and XLE.

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Crude oil prices

Crude oil prices have risen ~15% so far in 2019. Though fluctuations in oil prices don’t quickly affect midstream companies’ bottom lines, changes in oil prices tend to drive the sentiment for midstream stocks. The upcoming earnings may sustain the momentum in the sector.

Kinder Morgan will report on January 16 after the market closes. Enterprise Products Partners and Magellan Midstream Partners (MMP) will report their fourth-quarter results on January 31. Plains All American Pipeline will release its results on February 5. ONEOK is expected to report its results in the last week of February.

Learn how Kinder Morgan, Williams Companies, and ONEOK compare in KMI, WMB, and OKE: Which S&P 500 Midstream Stock Looks the Best?

Let’s next take a look at what analysts recommend for these stocks for the next 12 months in the next part of this series.


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