NBLX - Why Shares of These 3 Pipeline Companies Plummeted More Than 70% in March
In March, units of midstream pipeline master limited partnerships DCP Midstream (NYSE: DCP) and Noble Midstream Partners (NYSE: NBLX) fell by 73.9% and 77.2%, respectively, while shares of midstream pipeline company Targa Resources (NYSE: TRGP) fell by 78.7%, according to data provided by S&P Global Market Intelligence.
These were some of the worst performances in the energy industry, and much worse than the overall midstream pipeline segment as a whole, as measured by the Dow Jones U.S. Pipeline Index, which only fell 37.7% for the month, or the Hennessy Midstream BP Investor Fund, which was down 45.7%. And it was far worse than the S&P 500, which only made a 12.5% retreat. But that's what happens when you cut your payout, and all three companies announced dividend or distribution cuts during the month.
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