Alerian MLP ETF
Latest Alerian MLP ETF News and Updates
Why Sunoco Logistics Has the Lowest Profit Margins
Sunoco Logistics has the lowest profit margin and ROE among its peers. Its profit margin and ROE of 1.6% and 1.7%, respectively, are well below the group average.
Introduction to the Permian Basin — Part 2: Geography of the Permian Basin
The Permian Basin is one of the US’s primary drivers of oil production growth. Market Realist provides an overview of this prolific hydrocarbon asset with a primer piece: “Introduction to the Permian Basin”.
An investor’s guide to Spectra Energy Corp. and its earnings
Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.
Overview: ONEOK Partners and its 3 operating segments
ONEOK Partners (OKS) is a master limited partnership (or MLP) engaged in gathering, processing, storing, and transporting natural gas and natural gas liquids (or NGLs) in the U.S.
Comparison of exchange-traded funds and exchange-traded notes
ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.
MLPs: How They Operate in the Midstream Energy Industry
Most MLPs operate in the midstream energy industry. They’re mainly involved in gathering, processing, storing, and transporting energy commodities.
Hurricane Harvey Impacted Energy MLPs
Hurricane Harvey hit the US Gulf Coast last week. The US Gulf Coast is a major destination for US refineries and energy infrastructure.
Correlations between Energy ETFs and the Broader Market’s Moves
In the seven calendar days to February 8, 2018, OIH, XOP, XLE, and AMLP fell 13.6%, 12.7%, 11.8%, and 8.2%, respectively.
Why some MLPs are benefitting from increased propane exports
Significantly higher rates of propane exports have helped to boost propane prices—and the margins of some MLP names.
Energy ETFs Could Be More Aligned to Equity Markets than Oil
In the trailing week, OIH rose 0.5%—the only energy ETF on our list that closed in the green. US crude oil futures rose 2.6%.
Why Sunoco Logistics Revised Its 2015 Capital Expenditure Targets
Sunoco Logistics (SXL) will share the proportionate capital expenditure in the Bakken Pipeline project. This led SXL to revise its capital expenditure for 2015.
Why debt is now a less attractive financing source for master limited partnerships
Master limited partnerships rely highly on external capital to fund growth Master limited partnerships or MLPs are specially structured entities that must pay out most of the cash they generate to unitholders. So MLPs rely especially on external funding sources (as opposed to internally generated cash) to execute growth projects and acquisitions. Because of this […]
Why investors can expect synergies from the combined assets
ETP’s interest in Sunoco Logistics (SXL) gives ETE acccess to SXL’s geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets.
MLPs Continue to Slip after Weak April 2017
MLPs saw a huge decline in prices during the first week of May driven by the sharp decline in crude oil prices.
Must-know: Atlas Pipeline’s first quarter earnings analysis
Atlas Pipeline Partners (APL) released its financial information for 1Q14 on May 5, 2014.
Boardwalk Pipeline Partners: 2014 guidance and 2013 results
On February 10, 2014, Boardwalk Pipeline Partners (BWP) announced 4Q13 and FY2013 results. The company reported 4Q13 adjusted EBITDA of $129.6 million.
Enterprise Products Is Expected to Increase Distributions in 2015
Enterprise Products trades at a distribution yield of ~4.9%. One of the reasons for EPD’s relatively lower distribution yield might be its distribution coverage ratio.
What Could Drive Energy ETFs?
Among the energy ETFs, the Energy Select Sector SPDR ETF (XLE) had the highest correlation with US oil (UCO) (USO) prices at 78.7% between May 11 and May 18, 2017.
Why price differential and rail competition challenge Bakken
Although pipelines are the cost-effective way to transport crude oil, they require huge initial investment and are often impeded by regulations from the government agencies.
Why Targa Resources’ segment operating margins changed in 1Q14
In 2013, the company processed an average of 780.1 million cubic feet per day of natural gas and produced an average of 91.9 thousand barrels per day of NGLs.
Energy Transfer Partners: Sharp Decline in Crude Oil Prices
The one-year correlation coefficient between Energy Transfer Equity and crude oil was 0.49 as of July 11.
Why Was Greater Propane Demand Unable to Push Prices?
US residential propane demand is 1.5 MMbpd for the week ended December 4. This was 0.24 MMbpd more than the demand in the week ended November 27.
Why Sunoco Logistics has significant plans for the Permian Basin
Sunoco Logistics Partners L.P. (SXL) is a master limited partnership (or MLP). Its Crude Oil Pipelines segment transport 4,900 miles of crude oil, primarily in Oklahoma and Texas.
Must-know: The BPL segments that source from liquid-rich areas
Traditionally, the Merchant Services segment provides wholesale distributor service of refined petroleum products in the U.S. and the Caribbean.
Why this week’s winter storms could help propane companies
Propane names such as AmeriGas and Suburban Propane could be helped by this week’s winter storms.
What Does the Shift in the Natural Gas Futures Spread Indicate?
On April 5, 2017, active natural gas (UNG) (FCG) (BOIL) (GASL) futures were trading at a premium of $0.33 to futures contracts 12 months forward.
Why rising frac spreads are benefitting select MLP names
Last week, frac spreads traded up slightly, and over the medium term, frac spreads are up significantly. This is a positive catalyst for natural gas processors.
Oil’s Contango: Supply–Demand Fears Could Impact the Market
On October 3, 2017, US crude oil (USL) (OIIL) November 2018 futures settled $0.33 higher than the November 2017 futures.
Are Traders Confident about the Oil Supply-Demand Balance?
Between December 29, 2017, and January 8, 2018, the premium and the oil prices rose. The market expects a tightening supply-demand balance for oil in 2018.
Energy Transfer’s Strong Growth Continued in Q4 2018
Energy Transfer (ET) released its fourth-quarter and full-year 2018 earnings yesterday.
Are Supply Fears Returning to the Oil Market?
On December 5, 2017, the January 2018 futures contract for US crude oil settled at a premium of $2.5 to January 2019 futures.
Before you invest in master limited partnerships, read about this risk (Part 1)
What risk should you know about that could significantly affect MLP valuation? Read on to find out.
Natural Gas: Are Winter Demand Fears Rising?
On January 2, 2018, natural gas (UNG) (BOIL) (FCG) February 2018 futures settled $0.025 less than February 2019 futures.
Why Did Crude Oil Prices Rise?
On February 9, 2017, US crude oil futures contracts for March delivery closed at $53.00 per barrel—an ~1.3% rise compared to the previous trading session.
Overview: ONEOK Partners’ natural gas pipelines segment
ONEOK Partners’ (OKS) natural gas pipelines segment owns and operates regulated interstate and intrastate natural gas pipelines and natural gas storage facilities.
Futures Spread: What It Says about Natural Gas Prices
On March 1, 2017, active natural gas (UNG) (FCG) (BOIL) (GASL) futures were trading at a discount of $0.5 to futures contracts 12 months ahead.
A brief overview on Atlas Pipeline Partners
The company provides natural gas gathering and processing services in the Eagle Ford Shale play in Texas, as well as in the Anadarko, Arkoma, and Permian basins.
Drivers behind Williams Companies’ Recent Market Performance
William Companies (WMB) has recovered slightly after a weak August 2017, and it has risen 2.4% since last week. WMB has fallen 3.3% since the beginning of 2017.
Kinder Morgan Cuts Dividends by 75%
Kinder Morgan (KMI), the midstream energy giant, announced a ~75% quarterly dividend cut in its annual outlook release for 2016 on Tuesday.
Why Only 9 MLPs Ended in the Green Last Week
Alon USA Partners (ALDW), a downstream MLP involved in crude oil refining and refined products marketing, was the top MLP gainer last week.
Must-know: Why is Regency’s acquisition of PVR Energy important?
Gas prices may be low now, but long-term gas drilling is here to stay in North America Currently, natural gas prices are relatively depressed, and short-term natural gas drilling activity on the whole doesn’t appear to be rising (see Why natural gas rigs aren’t likely to rise much through year-end). However, Regency’s purchase of PVR […]
EMLP Outperformed AMLP: What Investors Should Know
The Alerian MLP ETF (AMLP) and the First Trust North American Energy Infrastructure Fund (EMLP) are two of the largest MLP ETFs.
Why DCP Midstream Partners’ Coverage Ratio Could Increase
DPM has substantial liquidity of $1.25 billion under its revolver credit facility. With a current debt-to-EBITDA ratio of 3.3x and a TTM coverage ratio of 1.1x, DPM has a cushion for raising fresh capital.
Are Natural Gas Supplies Overtaking Demand?
Futures spread On September 27, 2017, natural gas (FCG) (GASL) (BOIL) 2018 November futures traded $0.04 lower than November 2017 futures. That is, the futures spread was at a discount of $0.04. On September 20, 2017, the futures spread was at a discount of $0.10. Between September 20 and 27, 2017, natural gas November futures […]
Why lower crude oil price estimates impact the midstream industry
A falling inventory indicates that WTI crude oil is moving out of the inland U.S. towards end refining markets with help from new infrastructure coming online.
Analyzing US Distillate Inventories and Diesel Prices
The EIA estimates that US distillate inventories fell by 2.6 MMbbls (million barrels) to 135.4 MMbbls on September 22–29, 2017.
Should You Include Buckeye Partners in Your Portfolio?
Buckeye Partners’ (BPL) outlook looks positive from a long-term investment standpoint. At a broader level, ~54% of analysts rate Buckeye Partners as “hold.”
Must-know: Frac spreads get boost from oil price spike
Fractionation spreads got a boost last week with rising crude oil prices.
The Top 7 Analyst Favorite MLPs
Antero Midstream Partners, Viper Energy Partners, and Hoegh LNG Partners have the most “buys” among all the publicly traded limited partnerships.
Will ONEOK’s 2Q16 Results Contribute to Its Outperformance?
ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.
MLPs Recovered Slightly amid Strong Crude Oil Gains
US crude oil rose 8.6% last week and ended at $67.4 per barrel. Geopolitical tension increased due to the crisis in Syria.
Face-off: The AMLP ETF versus the MLPI ETN
AMLP has a ~46% total return over the last four years, while MLPI has kept pace with the AMZIX, with total returns of ~76%.
Linn Energy’s Losing Streak Continued on Friday, July 31
Linn Energy’s (LINE) bloodbath continued on Friday with a single day loss of 15.13% as crude oil continued to fall due to excess supply concerns.
Energy Transfer Equity Is Underperforming AMLP in 2018
Energy Transfer Equity (ETE) has gained 3.3% since the beginning of 2018. The Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs has risen 7.8%.
Overview: Regency’s recent acquisitions
On March 21, Regency closed its acquisition with PVR Partners. The combination creates a fully integrated midstream partnership platform by further expanding Regency’s position in the Appalachia Basin.
Why MLPs’ Sluggishness Continued Last Week
MLPs’ sluggishness continued last week despite strong crude oil. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, fell 1.2% last week.
Must-know: US energy sub-sectors during the global energy decline
There’s only one sector that didn’t decrease—master limited partnerships (or MLPs). MLPs are special corporate structures that pay most of their earnings as distributions to unit holders. MLPs usually have steady growth.
Key investment metrics: A financial analysis of LINN Energy
LINE’s EBITDA shows that it has been struggling with its earnings power lately. It has struggled despite a steady rise in its oil and gas production. LINE’s debt exploded from just over $3 billion in 3Q11 to over $9.5 billion in 2Q14.
Why National Fuel Gas is investing in pipeline expansions
As we discussed previously in this series, National Fuel Gas (NFG) noted in its latest fiscal 3Q14 results that its earnings growth was driven by higher earnings in its Midstream and Upstream businesses.
How MLP-Focused Funds Performed in May 2017
Among MLP funds, exchange-traded notes fell the most while the exchange-traded funds declined the least.
Brent-WTI Spread Impacts Your Oil-Related Investments
On February 14, WTI crude oil (USO) (USL) (OIIL) (SCO) active futures traded at a discount of $2.84 per barrel compared to Brent crude oil active futures.
Could Antero Midstream Partners Benefit from Strong Earnings?
Antero Midstream Partners fell 6% last year. However, it had a strong start to the new year. It has risen 6.8% in 2018.
Ethane production: The prospects and possibilities in the market
Ethane has historically received significantly more advantageous pricing than dry natural gas.
Why Is Crude Oil the Fundamental Driver for Energy ETFs?
At ~55.7%, the Alerian MLP ETF (AMLP) had the highest correlation with US crude oil from January 2, 2017, to February 2, 2017.
Oil Market Could Be Pricing in a Supply Deficit
The rise in the premium, along with the rise in oil prices in the trailing week, could mean that the market expects a supply deficit in the oil market.
MLPs Rallied despite Crude Oil’s Weakness Last Week
MLPs rallied despite crude oil’s weakness last week. The Alerian MLP Index (^AMZ) rose 2.7% during the week and ended at 269.1.
Capital Projects Should Fuel Enterprise Products’ Earnings Growth
Enterprise Products Partners (EPD) spent $1.2 billion on capital projects in the first quarter.
How MLP-Focused ETNs Performed in 1Q17
MLP-focused funds underperformed the SPDR S&P 500 ETF (SPY) in the recent quarter.
Why capex, asset mix, and margins drive Western Gas Partners
Western Gas Partners operates midstream assets located in major onshore producing basins in Wyoming, Colorado, Utah, Kansas, Oklahoma, Pennsylvania, and Texas.
Why the Permian Basin is a key focus for Magellan Midstream Partners
Magellan Midstream Partners (MMP) has made significant investments in pipelines in the Permian region to deliver crude oil from the Permian Basin in west Texas to markets along the U.S. Gulf Coast.
Wall Street analysts’ ratings of MarkWest Energy Partners
64.7% of the analysts have rated the company as “hold”, while the remaining 35.3% have rated it as “buy”.
The MLP-Treasury Yield Spread Contracted Marginally in Q3
The yield spread between the Alerian MLP Index yield and the US ten-year Treasury yield contracted to 5.0% at the end of Q3 from 5.1% at the end of Q2.
Why natural gas gathering and processing are important for MLPs
Natural gas gathering and processing is a significant part of the operations of many midstream master limited partnerships.
Rates inched up, but debt remains cheap for most MLP names providing cash for growth
Corporate debt rates for MLPs increased slightly over the past two weeks, but from a long-term perspective debt funding still remains extremely cheap.
An introduction to the Alerian MLP Infrastructure Index
AMZI is an index that consists of the top ~25 American energy infrastructure MLPs, which primarily engage in energy commodity transport and processing.
Jeffrey Gundlach: The Junk Bond Market Needs Higher Oil Prices
Jeffrey Gundlach also warned about the high-yield market (HYG) (JNK). He said the “clock is running out” for energy companies (IEZ) due to low oil (USO) prices.
Analysts’ Recommendations for Williams Partners
At a broader level, ~50% of analysts surveyed by Bloomberg rate Williams Partners a “buy” and the remaining ~50% rate it a “hold.”
Why the long-term declining trend at Cushing may not continue
Crude stocks at Cushing, Oklahoma increased by 716,000 barrels to 19.6 million barrels (or MMbbls) in the week ending October 10.
Futures Spread: Is the Natural Gas Market Turning Bullish?
On September 20, 2017, natural gas (FCG) (BOIL) October 2018 futures closed $0.10 below its October 2017 futures.
MLP analysis: A must-know overview of Access Midstream Partners
Access Midstream Partners LP (ACMP) is a master limited partnership that provides natural gas gathering and processing services under long-term fixed-fee contracts.
How Harvey and Irma Affected the Futures Spread amid Supply Glut Worries
On September 12, 2017, US crude oil (DBO) October 2018 futures settled at $2.09 above its October 2017 futures.
Inside the Natural Gas Futures Spread: Where Are Prices Headed Now?
On May 3, 2017, natural gas June 2017 futures were trading at a premium of $0.33 to June 2018 futures contracts.
MLPs Recovered Slightly in the Week Ending August 25
MLPs recovered slightly in the week ending August 25—possibly due to an overcorrection in the first three weeks of the month.
Oil Futures Spread: Oversupply Concerns Still Loom
On October 10, 2017, US crude oil (USO) (DBO) (OIIL) November 2018 futures traded $0.46 higher than November 2017 futures.
Paulson & Co. adds a new stake in Talisman Energy
Talisman Energy is a global upstream oil and gas company headquartered in Canada. Revenue plunged to $44 million, down from $929 million in 2013.
Energy Transfer Partners Has Lost 2.1% in May: Can It Recover?
Recently, Energy Transfer Partners (ETP) merged with Sunoco Logistics Partners. Energy Transfer Partners has lost 2.1% since the beginning of May.
AMLP Rose Last Week in a Good Week for Energy Stock ETFs
AMLP gained almost as much as the VanEck Vectors Oil Services ETF (OIH) in the week ending August 14.
Why Tesoro’s crude oil gathering and pipeline segment is positive
Tesoro Logistics’ (TLLP) operations are organized into the Crude Oil Gathering segment and the Terminalling and Transportation segment.
NuStar Energy’s 1Q14 earnings’ analysis: Higher revenues recorded
NuStar Energy recorded total revenues of $849.2 million, or 8.1% higher than $785.3 million the company recorded in 4Q13.
Analyzing the Best Performing Midstream MLPs on June 25
The best performing midstream MLP on Thursday, June 25 was Western Gas Partners (WES). It rose 0.5% yesterday. However, it’s close to its 52-week low.
Is the Oil Supply Shrinking?
On December 29, 2017, the price gap between February 2018 futures and February 2019 futures was $3. On December 22, 2017, that price gap was at a premium of $2.35.
Overview: An introduction to Mars pipelines’ expansion program
Mars’ mainline capacity is a 54-mile segment from the connections to Ursa and Medusa at the West Delta to the connection with the Amberjack pipeline at Fourchon, Louisiana.
What’s Hampering Energy Transfer’s Recent Performance?
Despite solid earnings growth in the last several quarters, Energy Transfer’s (ET) performance has failed to pick up.
Why the MLPJ ETF shows tracking error versus its benchmark index
The effect of sampling—the difference in the holdings between MLPJ and its benchmark index—is another cause of the tracking error.
Energy Transfer acquires Regency Energy Partners for $18 billion
On January 26, a Energy Transfer Partners (ETP) unit lost ~6.4%. A Regency Energy Partners (RGP) unit, meanwhile, gained ~5% to finish at $24.93.
How Energy ETFs Are Correlated to Falling Oil Prices
At ~65.2%, the VanEck Vectors Oil Services ETF (OIH) showed the highest correlation with US crude oil between April 4–May 4, 2017.
Linn Energy: Top Upstream MLP Loser on Tuesday, August 11
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. UNG tracks daily movements in natural gas futures. It rose 0.44% yesterday.
Hi-Crush Partners Has Outperformed Peers in 2018 So Far
Hi-Crush Partners (HCLP) stock is up nearly 2% in 2018.
Alerian MLP ETF Falls on Negative Investor Sentiments
The Alerian MLP ETF, which comprises 23 midstream energy MLPs, fell 2.4% on October 22, 2015, along with the entire midstream sector.
Higher propane prices help frac spreads and natural gas processors
Frac spreads traded up slightly last week and have been relatively range-bound over the past several months.