MLP stocks face 'quagmire,' lag rest of energy sector

|By:, SA News Editor

The Alerian MLP index -1.2% after tumbling as much as 1.6% intraday, even as E&P, oil services and refining stock indexes are all higher on the day and WTI April crude oil futures edge higher to close at $60.96/bbl.

NGL Energy Partners (NGL -4%) is worst performer in the AMZ, followed by Genesis Energy (GEL -2.7%) and Sunoco LP (SUN -1.4%), which also was downgraded to Sell at Goldman Sachs.

Morgan Stanley analyst Tom Abrams cites a "quagmire" of near-term trading and structural issues plaguing the Midstream/MLP group, such as "anemic fund flows, rising rate fears, persistent funding needs [and] opaque structural uncertainties within several families."

Abrams' top picks in the group: WMB, WPZ, PAA, PAGP, ETE, TRP, HESM, EQM, EQGP, OMP.

ETFs: AMLP, AMZA, KYN, AMJ, TYG, YMLP, KYE, JMF, FMO, CEM, CBA, NML, SRV, MLPA, MLPI, FEN, NTG, GER, FEI, KMF, MLPQ, CEN, EMLP, MLPX, EMO, FPL, MIE, GMZ, DSE, MLPG, TTP, SRF, CTR, MLPN, SMM, JMLP, ZMLP, MLPY, MLPS, AMU, ENFR, YMLI, ATMP, AMJL, MLPZ, IMLP, MLPC

Source: Bloomberg First Word

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