InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

This Two-Minute Market Move Could Make You Rich

This Two-Minute Market Move Could Make You Rich[Revealed] How to generate instant income from the stock market. Over and over again. At will. This technique is so powerful – and safe – we’re guaranteeing you can use it to generate $1 million (or more) in retirement cash. And we’ll even send you a $1,000 check to kickstart your journey. Go here for details.

 

The Quarterly MLP Report Card

By Robert Rapier on October 21, 2015

The third quarter is in the books, and it was one MLP investors would rather forget. West Texas Intermediate (WTI) began the quarter near $60 a barrel (bbl) following a strong second quarter. But the benchmark oil price would plunge 24% in Q3, taking nearly every MLP down with it. Natural gas prices fared better, but still dropped 12% during the quarter. For the first time in three years, natural gas prices remained under $3 per million British thermal units (MMBtu) for an entire quarter.

The impact of continued weakness in commodities prices was brutal. The Alerian MLP Index, which consists primarily of large and mid-cap energy MLPs and captures about 75% of the sector’s market capitalization, had a total return of -21.1% for the quarter. The average total return for MLPs as a whole was -26.5%. In fact, the decline was so broad that only three of the 127 publicly traded partnerships in my database — the refiners Alon USA Partners (NYSE: ALDW), CVR Refining (NYSE: CVRR) and Northern Tier Energy LP (NYSE: NTI) — registered a positive total return for the quarter. ALDW was the best with a 15.5% return.

Here are the top 10 performers for the quarter, sorted in order of descending Q3 total return. Note that none are conventional midstream MLPs:

151021MLPIItable1

  • EV = Enterprise value in millions as of Oct. 19
  • Q3 = Q3 total return calculated from the close on June 30 to the close on Sept. 30, adjusted for dividends paid during the quarter
  • YTD = Year-to-date total return

The bottom 10 performers for the quarter, starting with the worst, are this year’s usual suspects among the coal producers, fracking sand producers and oil and gas producers:

151021MLPIItable2

Despite the Q3 beatdown, there are still a number of partnerships in positive territory for the year. Here are the top 10 for the year through Q3:

151021MLPIItable3

Here’s hoping we get an extended bounce in Q4.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

 

 


You might also enjoy…

 

Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.