
MLP ETFs at a 52-Week High: Here's Why
MLP ETFs have been hovering around a 52-week high level.
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MLP ETFs have been hovering around a 52-week high level.

Midstream MLPs, as measured by the Alerian MLP Index, ended August down 1.3% on a price basis but up 0.5% once distributions were considered.

Distribution coverage for MLPs remains elevated relative to history after 1Q20 distribution cuts, implying that MLPs are better able to afford their distributions today than in the past, yet yields remain elevated compared to history.

Chevron Corp. announced it will acquire Noble Energy Inc.

While a continuation of the Trump administration would be more friendly to oil and gas companies, a potential Biden administration appears manageable for the industry.

The equity price performance and elevated yields for midstream and MLPs paint a different picture than what may be drawn from fundamentals.

Recently in 2020, Master Limited Partnerships (MLPs) experienced quite significant volatility, following multiple years of above average volatility for the space.

Midstream MLPs, as measured by the Alerian MLP Index (AMZ), ended July down 4.8% on a price basis and down 3.6% once distributions are considered.

Midstream and utilities both tend to appeal to investors with their attractive income and diversification benefits.

The World Bank estimates global GDP will fall by -5.2% in 2020 from the effects of COVID-19. The EIA predicts US oil production will be largely range-bound for the next eighteen months at levels 10-15% lower than December 2019.

In response to shifts in the midstream universe, Alerian launched the Alerian Midstream Energy Index (AMNA) in June 2018 to provide a sector benchmark for investors and industry stakeholders primarily concerned with representation.

Despite the decrease in midstream yields in recent months, yields for both the Alerian MLP Infrastructure Index (AMZI) and the Alerian Midstream Energy Select Index (AMEI) are above their historical averages at 12.5% and 8.8%, respectively, as of July 10.

Midstream MLPs, as measured by the Alerian MLP Index, ended June down 7.9% on a price and total return basis.

This is a weekly series focused on analyzing the previous week’s economic data releases. The objective is to concentrate on leading indicators of economic activ

Investors have long struggled to accurately value midstream companies. The historical performance of the Alerian MLP index suggests a disconnect between how mar

Comparing midstream with other equities, the discounted EBITDA multiples for MLPs and midstream relative to history stand in contrast to the broader market and

Yield spread analysis has become an inadequate standalone method for valuing midstream companies, as the industry’s emphasis on yield alone has given way to a g

The current price environment provides little incentive to bring new wells to production. With fewer new wells being drilled and completed, shale production wil

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March MLP performance reflected the unprecedented combination of significant and abrupt crude oil demand destruction, due to rapid efforts to contain COVID-19 g