Hinds Howard's  Instablog

Hinds Howard
Send Message
I serve as the senior MLP research analyst for CBRE Clarion Securities, a global asset management firm based in Radnor, PA. My primary focus is on investing in Master Limited Partnerships (MLPs) within a larger infrastructure investment team.
My company:
CBRE Clarion Securities
My blog:
  • MLP Week Thoughts: Capital Markets Still Open, MLPs Load Up 0 comments
    Oct 9, 2011 11:37 AM | about stocks: KMI, MWE

    On Friday, amidst the Occupy Wall Streeters and Steve Jobs obituaries, something else flooded the streets: an excess of new MWE and RGP units… The MLP Index was down only 0.3% in a very volatile week.  3 of the 5 days saw moves of larger than 1.5%, and 4 out of 5 saw the index move more than 1%.  Monday, the MLP index dropped 2.4%, then Wednesday and Thursday it recovered, before dropping another 1.1% on Friday.  Friday’s action can be mostly attributed to the $427.5 million of new equity issued on Thursday night from Markwest (MWE – Press Release) and Regency (RGP – Press Release).  Both stocks struggled after pricing, although MWE held up better, closing only 1.4% below the price of the equity deal, and 4.4% below the previous close.  By comparison, RGP closed Friday 3.1% below pricing, and 6.4% below its previous closing price.

    I can’t remember another time when there were  2 follow-on equity deals launched on a Thursday afternoon.  Generally, Friday’s are more thinly traded and weaker than other days of the week, so you don’t usually want to expose your unit price to the selling pressure post offering on a Friday.  Monday afternoon through Wednesday afternoon are the preferred days of the week to issue equity, but clearly management teams are looking to take advantage of any strength in the market, and two straight +1.5% days in a row (Wednesday and Thursday), were clearly enough to make them pull the trigger.

    MLPs lagged broad equity indexes, which were all up this week on what appeared to be selling fatigue from a very challenging September.  Commodity prices recovered somewhat this week, treasury rates were up, and gold was up.

    The final results for the index this week (almost flat) are deceiving, as many of the smaller MLPs were off much more than the index would suggest.  The average price change for the 65 MLPs (not including GPs) that I track was -1.9%, which suggests that the larger and more heavily traded MLPs outperformed this week.  The top 5 largest MLPs wre up on average 0.89% for the week, led by $PAA (2.82%), $KMP(2.28%) and $EPD (1.87%).  Other strong performers this week included some of the previous week’s losers like coal names $OXF and $NRP.  RGP, as mentioned above, had a very rough week, down 9.5%, along with names that seem to be consistently on the red side of the below chart: $GLP and $CPLP.

    Click here to read the rest...

    Stocks: KMI, MWE
Back To Hinds Howard's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • something going on with $OKS today, no news but down 2.4%
    Dec 17, 2010
  • $TRGP prices IPO at $22 (4.7% yield), ends the day up more than 10%, closing at a 4.2% yield
    Dec 7, 2010
  • New normal after months of MLP outperformance: market way up, interest rates rising, MLPs flat/down
    Dec 2, 2010
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.