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Summary

  • Alerian MLP index loses 0.32% for the week while S&P 500 sets record high with 1.25% gain.
  • With the close of Q2, investors start looking towards earnings season with one-third of MLPs and related companies reporting in the second half of July.
  • Tiger 21 Investment group suggests accredited investors are allocating 5% to 20% to Master Limited Partnerships.

For the holiday shortened week, the Alerian MLP index declined 0.32% as the market considered higher rates. The AMZ Total return gain is 15.23% year-to-date. The S&P 500 closed the week at a new record high and 1.25% higher than the previous Friday's close. SPX has posted an 8.20% total return YTD. The number of new 52-week highs for MLPs and related companies climbed to 33 for the last 5 market days, up from 29 listed last Friday. There were no new 52-week lows.

During a slow news, holiday shortened week, any bit of news will move unit prices up or down. However, even with the large number of 52-week highs, most units posted small value changes. With the door closed on Q2, the market and investors wait for earnings season to kick off.

Tiger 21, an investment group representing investors with $25B of investment capital, suggests their accredited investors are increasing their allocations to Master Limited Partnerships, in some cases, up to 20%.

Unit Value Winners and Losers

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The week's top performer, Valero Energy Partners (NYSE:VLP) announced the completion of the unit's first drop down from sponsor Valero Energy Corp. (NYSE:VLO). The asset purchase was funded out of cash from the IPO that was retained by VLP. Tallgrass Energy Partners (NYSE:TEP) declared a Q2 distribution of $0.38, up $0.05 or 16.92% over the Q1 distribution. Linn Energy (LINE) purchased $2.3B of assets from Devon, which will be funded by their Granite Wash sale in the near future, moving units up 1.29%.

The biggest decliner, Ferrell Gas Partners (NYSE:FGP) announced the purchase of independently owned Wise Choice Propane located in Ohio. No purchase price was given, but the purchase was stated to be accretive. This was FGP's 6th acquisition since the FY started on August 1, 2013.

Distribution Rate Changes

In addition to the TEP dividend announcement, upstream MLPs Linn Energy LLC, LinnCo LLC (NASDAQ:LNCO), and Breitburn Energy Partners (NASDAQ:BBEP) announced ongoing monthly distributions at the prevailing rates.

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Insider Trading

Williams Companies (NYSE:WMB) received early termination of the Hart-Scott-Rodino waiting period and completed the purchase of the 50% GP interest and 55.1 million LP units of Access Midstream Partners (NYSE:ACMP) from Global Infrastructure Partners II.

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Share Issuance News

There was no meaningful issuance news from this holiday shortened week.

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

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ETF, CEF and Mutual Fund Money Flows

During a week where retail investors reduced their aggregate equity fund exposure, MLP focused mutual funds gathered $222 million of new money and ETFs added $70 million.

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Next Week's Earnings Calendar

The July earnings calendar continues to fill up as companies make their release dates official. Nearly a quarter of all MLP companies will be reporting on July 30 and 31.

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All charts and tables provided by MLPData.com

Source: Weekly Intelligence For MLP Investors