Week Thoughts: MLPs for the Win

Bounce back week for midstream with MLPs and Canadian midstream performing better than Canada. Energy stocks outperformed the broad market, which helped with sentiment for midstream. Trade war talk, tech earnings disappointments dominated the headlines. But interest rates were down, and the 10-year rate is now closer to 4% than 5%, but just barely. While headlines came fast and furious, market action was subdued overall.

Midstream earnings have been good so far, with mixed reactions in the aftermarket. Hoping for continued solid results this week, with better market reactions to said results. Competition is heating up in the NGL export business on the Gulf Coast, with MPLX and OKE putting together their own wellhead to water solution, but it seems like the pie of demand for NGLs will continue to expand, so maybe there’s enough to go around for everyone…

Anyway, enjoy the Super Bowl, talk to you next week.