Seeking Alpha
, MLP Data (1,576 clicks)
Research analyst, oil & gas, newsletter provider, master limited partnerships
Profile| Send Message|
( followers)  

Summary

  • With the S&P 500 down 0.68% for the week, the Alerian MLP index lost just 0.31%, continuing a pattern of out performance by the MLP sector.
  • MLP secondary issuance remains quiet, even as unit prices for over 50% of MLPs are within 5% of their 52-week highs.
  • Mutual funds have offered broadest selection for superior performance.
  • Sunoco Logistics split to improve liquidity and narrow spreads, Oiltanking Partners up next for 2:1 split.

The Alerian MLP index declined by 0.31% this week, following four consecutive weeks of positive results. The AMZ YTD total return remains firmly in double digits, up 11.42%. The S&P 500 lost 0.68% for the week. There was plenty of positive results for MLPs during the week with 20 new 52-week highs against zero new lows among the MLPs and related company values.

Unit Value Winners and Losers

(click to enlarge)

Southcross Energy Partners LP (NYSE:SXE) announced a merger with TexStar Midstream Services LP. The merger will be accompanied by a drop down of the TexStar Rich Gas System and a roll up of the SXE GP and IDRs into the newly combined company. EQT Midstream Partners LP (EQM) and Seadrill Partners (SDLP) will be added to the AMZ index on June 20th, one year after their IPOs, moving both higher.

The announcement of the purchase price of the Transmontaigne Partners LP (NYSE:TLP) general partner interest by NGL Energy Partners LP (NYSE:NGL) appears to have been viewed by the market as a negative for TLP and a positive for NGL, the latter due to the IDR benefits to NGL.

Distribution Rate Changes

No announcements released this week.

Insider Trading

During the week NGL Energy Partners LP announced the pending purchase of the GP interest and 19.7% of Transmontaigne Partners LP for $200 million. It was noted that the transaction did not involve the sale or purchase of any publicly traded units. The 2MM unit sale by John Raymond may be related. From the filing:

"Beneficial ownership of the Common Units is being reported by John T. Raymond (the "Reporting Person") solely in his capacity as the Chief Executive Officer and Managing Partner of NGP MR GP, LLC, the general partner of NGP MR, LP, the general partner of NGP Midstream & Resources, LLC, a member holding a majority interest in EMG NGL HC."

(click to enlarge)

Share Issuance News

Secondary issuance by MLPs remains quiet, even as over half of unit values remain within 5% of 52-week highs. Raising equity capital at high unit values should provide long-term benefits for distribution growth.

Get the details of any offer of interest by clicking on the specific issue on the Issuance page of the MLPData Dashboard.

(click to enlarge)

(click to enlarge)

ETF, CEF and Mutual Fund Money Flows

MLP focused fund flows remained close to the trend with $370 million added for the last week. Mutual funds added $224 million and ETFs took in $146 million. To date, actively managed Mutual Funds have offered investors the widest selection of total return leaders across the packaged product universe.

(click to enlarge)

(click to enlarge)

Next Week's Earnings Calendar

The 2014 Q2 earnings season starts afresh on July 17 with the Kinder Morgan companies scheduled to report.

To get this round-up each week, please make sure you are following MLPData here on Seeking Alpha.

All charts and tables provided by MLPData.com

Source: Weekly Intelligence For MLP Investors