Legacy Reserves (LGCY), an upstream MLP (master limited partnership), was the top loser among MLPs last week (ended December 8, 2017), falling 13.5% during the week. LGCY’s fall last week can be primarily attributed to the sharp decline in natural gas prices.
Seadrill Partners (SDLP), the MLP formed by Seadrill Limited (SDRL) to own, operate, and acquire offshore drilling rigs, was the second-biggest MLP loser last week, showing a WoW (week-over-week) fall of 9.7%. SDLP’s decline last week can be primarily attributed to the decline in crude oil prices and the weakness in US offshore production activity.
According to Baker Hughes, the total US Offshore rig count fell to 20 in the previous week (ended December 1, 2017), compared with 22 in the week before that. However, the rig count was unchanged by the end of last week (ended December 8).
SDLP has lost 12.1% since its 3Q17 earnings announcement and 20.5% since the beginning of this year. For details on the partnership’s 3Q17 earnings, read Highlights of Seadrill Partners’ 3Q17 Results.
Teekay Offshore Partners LP
Teekay Offshore Partners LP (TOO), the MLP involved in the marine transportation of petroleum products including crude oil, refined products, and NGLs (natural gas liquids), was the third-biggest MLP loser last week, falling 8.8% during the week.
TOO has lost a massive 56.7% since the start of 2017, which can be primarily attributed to its weak earnings and the downward revision of its earnings estimates.
NuStar GP Holdings
NuStar GP Holdings (NSH), the GP (general partner) of NuStar Energy (NS), was the fourth-biggest MLP loser last week, falling 6.1% during the week. NSH’s fall last week can be primarily attributed to the analysts’ lower earnings estimates for 4Q17. NSH has lost 51.7% so far in 2017.
Other top MLP losers
Sprague Resources (SRLP), Ferrellgas Partners (FGP), Martin Midstream Partners (MMLP), Archrock Partners (APLP), Enbridge Energy Partners (EEP), and Blueknight Energy Partners (BKEP) were also among the top-ten MLPs losers last week.
In the next part of this series, we’ll look at the top MLP gainers.
Crestwood Equity Partners (CEQP), a midstream MLP, was upgraded at UBS last week. UBS raised CEQP to a "buy" from a "neutral."
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