XLE - MLPX: Outperformance From MLPs Continues Still An Attractive Valuation
2024-06-14 02:15:41 ET
Summary
- MLPX is close to all-time highs, outperforming energy equities like XLE, while the price of Brent holds under $80 per barrel.
- MLPX invests in midstream infrastructure entities, offering high yield and diversification benefits, which are often less correlated to the price of WTI versus oil & gas stocks.
- Despite a concentrated portfolio and weak seasonality ahead, MLPX's technical situation is healthy with potential for new highs, while its P/E multiple is attractive.
- I outline key price levels to monitor on the chart.
It was two years ago when WTI and Brent crude oil prices peaked. At the time, commodities seemed like the only strong hedge against an ongoing stock and bond bear market. Fast forward to June 2024, and oil is down sharply, but is still holding above the $70 mark on WTI and around $80 on Brent. Energy equities are down sharply from their Q1 peak amid a renewed bout of AI euphoria taking any kind of wind out of the sails of oil and gas names. ...
MLPX: Outperformance From MLPs Continues, Still An Attractive Valuation