DCP - Why Units of DCP Midstream Partners Skyrocketed 134% in April
It would be an understatement to say that units of DCP Midstream (NYSE: DCP) have been volatile this year. The MLP nose-dived a stunning 73.9% in March and then followed that up with an epic 133.9% rally in April, according to data provided by S&P Global Market Intelligence. Fueling that wild ride were huge swings in energy prices, which forced the energy company to make several changes so that it could navigate the industry's current challenges.
DCP Midstream made several significant adjustments to its 2020 spending plan as commodity prices cratered in March. The two biggest ones were a 75% reduction in its capital spending plan and a 50% cut to its high-yielding distribution. These moves will allow the company to retain an additional $775 million in cash this year, which would help reduce leverage and strengthen its balance sheet.
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