MLPs followed up last week’s modest bounce with a huge week in a risk-on surge for equity markets, commodity markets and everything else this week. MLPs led the way for a second straight week, beating the AMNA by nearly 300 basis points. Oil prices, natural gas prices, and the stock market were all strong this week, which helped.

Monday’s big positive move was helped by an MLP roll-up announcement and TRGP’s positive update. Wednesday’s big positive move seemed to be short covering after the vice presidential debate where Kamala Harris was emphatic about Biden not banning fracking. PAA was particularly strong after being pressured as the posterchild for a fracking ban on federal land.

This year, including this week, the AMZ has rallied 8% or more in a week five times, reflective of the heightened volatility of 2020. For context, 2019 had just one such week (the first week of

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Last week, we discussed Delek US Holdings (NYSE: DK), an oil investment company that’s significantly undervalued. Now let’s take a look at the company’s midstream subsidiary, Delek Logistics Partners (NYSE: DKL). As we’ll see throughout this article the company’s midstream subsidiary and and its double-digit yield make the company a valuable addition to your portfolio.

Delek Logistics Partners – InvestorObservors

Delek Logistics Partners Overview

Delek Logistics Partners has an impressive portfolio of assets that it’s focused on utilizing the assets of.

Delek Logistics Partners Overview – Delek Logistics Partners Investor Presentation

Delek Logistics Partners has a share price of $30 / share with distributions of $3.6 / LP annualized, or an 11% current yield. The company is committed to growing distributions by the mid-single digits annualized, which is incredibly respectable for a double-digit yield. The company has had a difficult time recently, but its expecting the outlook to improve going

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Midstream struggled again this week in a risk-off week for stocks and commodity prices. Utilities and infrastructure outperformed, starting to show more consistent defensive characteristics since the market rolled over a few weeks ago.

MLPs dropped 4%+ in back-to-back weeks for the first time since March. Midstream was only down three of four days, an improvement from all five days last week. The MLP Index total return since June 8 is -30%, and the AMNA total return is -19% from that date. It’s been a rough three months, but MLPs’ return is still +66% from the absolute bottom in March. The volatility and short cycle swings are the new normal for a midstream sector that continues to trade with sentiment for energy broadly.

Midstream management teams continue to re-assess the fundamental environment and cut back on plans for new infrastructure. This week’s EPD pipeline cancelation is probably the last big

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