Midstream stocks fell marginally
MLPs fell marginally in the week ending January 25. The Alerian MLP Index fell 0.6% last week. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 1.4% and the S&P 500 Index fell 0.2%. Crude oil prices fell ~0.2% last week. Plains All American Pipeline (PAA), Energy Transfer (ET), and Kinder Morgan (KMI) were the biggest losses among the top midstream stocks.
Plains All American Pipeline fell 3.8%, Energy Transfer fell 1.6%, and Kinder Morgan fell 1.5% last week. Magellan Midstream Partners (MMP), Williams Companies (WMB), and Enterprise Products Partners (EPD) rose 1.3%, 1.0%, and 0.7%, respectively, during the week. The above graph shows how the top midstream stocks performed last week.
Kinder Morgan’s agreement with Tallgrass Energy
Kinder Morgan announced an agreement with Tallgrass Energy (TGE) to increase the crude oil takeaway capacity in the Powder River and DJ (Denver-Julesburg) basins. The agreement involves using certain existing assets of the two companies and constructing 200 miles of new pipeline.
Enterprise Products Partners is scheduled to report its fourth-quarter results on January 31. For an earnings preview, read Enterprise Products’ Earnings Are Expected to Rise in Q4. Magellan Midstream Partners and Tallgrass Energy are scheduled to report their earnings on January 31.
Next, we’ll discuss the biggest losses and gains among MLP and midstream stocks last week.