Week Thoughts: Appreciating Midstream
W week for Midstream Squad
Energy stocks won the week within the S&P 500, and midstream did better than energy stocks, with 2%+ gains across all midstream benchmarks. Oil prices weren’t the driver, and midstream earnings weren’t great this week, but we’ll take the win. One week doesn’t make a trend, but it would be nice to see an ongoing rotation into companies that operate essential energy assets in an uncertain world. Midstream deserves more appreciation.
Earnings Summaries
G&P/NGL players TRGP and WES went against trend in that subsector with strong quarters, ET and KNTK were weak as expected, while MPLX was somewhere in the middle.Natural gas pipeline names posted boring results that met expectations, but the market cheered long term growth outlook (ENB, TRP) and progress on projects (WMB).Mixed results in the non-traditional names like NGL (good) and GLP (bad).