2014 Q1 Quarterly Market Intelligence For MLP Investors

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Includes: BWP, EMES, NGLS, NRP, OCIP, TEP
by: MLPData

Summary

AMZ and S&P500 near parity for Q1 1.15% vs 1.30%.

23% of MLP Universe had a Q1 Total return => 10%.

30% of MLP Universe had a Q1 Total return =<0 0%.

Period ending unweighted Q1 Yield 6.18% with an average 3 Year CAGR of 7.13%.

Closed End Funds outperformed ETF, ETN and Mutual Funds.

2014 Q1 performance was led by the movement out of high yield/low coverage units to those with visible double digit CAGR growth. Q4 earnings calls were impacted by weather related supply challenges and an uncertain outlook for inventories. Targa Resources Partners (NYSE:NGLS) pre-announced their Q1 results and raised 2014 Adj EBITDA guidance by 30-40%, a potential indicator of what to expect from other issuers with a similar asset footprint.

Top 10 MLPs

The top two MLPs for Q1, Emerge Energy Partners LP (NYSE:EMES) and Tallgrass Energy Partners LP (NYSE:TEP) came into the market with mid-2013 IPOs. Both companies are in a rapid growth phase for both EBITDA and distributions to investors.

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The top 10 performers based on Trailing Twelve Month total return all have a similar high growth CAGR outlook

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Bottom 10 MLPs

Boardwalk Pipeline Partners LP (NYSE:BWP) suffered the results of cutting its quarterly distribution by 80%. OCI Partners LP (NYSE:OCIP) IPOd in October and reached its recent peak at the start of 2014. OCIP still closed the quarter 14% above the close on the IPO date. Natural Resource Partners LP (NYSE:NRP) also reduced its distribution, by 36%.

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Top 10 MLP Yields

The top 10 MLP yields at the end of the quarter includes all of the double-digit yields. Note that, in most cases, these are zero distribution growth companies with weak coverage . Lack of expected distribution growth can lead to a higher level of unit price volatility.

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Top MLP Focused Funds

Active management paid off for investors in the top closed-end funds for the quarter, compared to the passively managed ETFs and ETNs. Approximately $15B TTM of fund inflows driven further issuance of 6 new funds focused on master limited partnerships.

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All charts and tables provided by MLPData.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.