Themidstream sector was the place to buy low and sell high during the first halfof 2016.
Aftercollapsing along with commodity prices in the first quarter, shares of manymidstream companies charged higher in the second quarter, rebounding abovetheir ending levels for 2015.
BetweenFeb. 11, when stock valuations reached their nadir, and June 30, the AlerianMLP Index and the SNL Midstream Energy Index indices both jumped about 56%,outstripping the 27.5% climb in the SNL Energy Index during the same period.
Fromthe end of the first quarter, to the end of the second, the SNL MidstreamEnergy Index gained nearly 19% while the Alerian MLP Index rose by more than17%. The SNL Energy Index, comprising publicly traded electric, gas, merchantand diversified companies in SNL Energy's coverage spectrum, rose about 10%over the same period.
Afew companies and master limited partnerships stood out among the pack ashaving particularly impressive gains in the second quarter.
Althoughit reduced itsquarterly distribution, NGLEnergy Partners LP jumped about 157% in the quarter, emerging asthe highest performing stock during the second quarter. It concluded thequarter with a convertible preferred units offering, by 20%, and a to register and sell common unitsworth up to $200 million.
andEnergy Transfer Equity LPcame in second and third with 122.3% and 101.5% gains in their unit valuesduring the second quarter.
Rose Rock is being acquiredby SemGroup Corp. ETE'svalue rose as the market increasingly believed that the partnership would scrapits deal with Williams Cos. Inc.Market expectations of an annulled merger materialized into reality on June 29.
,which was down 58.3% during the quarter, was the worst stock performer amongthe midstream companies tracked by SNL Energy. In April, the refining andprocessing-focused partnership suspendedits distributions.