Oil Wasn’t the Only Catalyst Fueling Energy Stocks This

Week

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Image Source: National Oilwell Varco.

Crude continued its rebound this week, jumping past $45 a barrel, touching a 2016

high. That certainly provided some fuel to get this week's energy stock rally started.

However, crude wasn't the only catalyst this week, with a number of the biggest energy movers fueled by news-driven catalysts.

What:Seadrill Partners (NYSE: SDLP) jumped more than 18% this week.

So What: Key driver: Cash distribution and

credit amendment Seadrill Partners announced its first

quarter cash distribution of $0.25 per unit

That’s in line with last quarter, but down 55% over last year’s rate after the company reduced its payout at the end of 2015 to preserve capital

The company also announced an amendment to certain of its credit facilities

Now What: The company has consented to an

agreement between its parent, Seadrill, and its banking group to amend covenants relating to secured credit facilities where both parties are guarantors

Key takeaway: With no changes to the payout and more breathing room on its credit facilities, Seadrill Partners investors are breathing a bit easier

What:National Oilwell Varco (NYSE: NOV) rallied 21% this week.

So What: Key driver: Earnings and

an analyst upgrade Morgan Stanley upgraded

the company from underweight to overweight and set a $45 price target right before the company released its first-quarter results

Now What: That timing proved to be

impeccable after the company turned in a lower loss than expected, beating the consensus estimate by $0.03 per share

Key takeaway: Investors liked the upgrade and the fact that earnings weren’t as weak as feared

What:Memorial Production Partners (NASDAQ: MEMP) surged 22% this week.

So What: Key driver: The acquisition of its

general partner and the reduction of its distribution

Memorial Production Partners announced this week that it has agreed to acquire its general partner and 50% of the incentive distribution rights from Memorial Resource Development as well as the other 50% of the IDRs from a third party for $0.75 million

Now What: The transaction will simplify the

company’s corporate structure with minimal impact to its liquidity

The company also announced it will reduce its distribution 70% to $0.03 per share in order to preserve liquidity

Key takeaway: Investors like the moves to preserve liquidity and simplify its corporate structure

What:American Midstream Partners (NYSE: AMID) rallied 32.7% this week.

So What: Key driver: A distribution

reduction and acquisitions

American Midstream also announced a distribution reduction, reducing its payout by 13% to provide additional liquidity

Now What: The company also announced it

was acquiring $225 million in assets in the Gulf of Mexico, including the Destin natural gas pipeline and an additional interest in Delta House

These moves will boost the company’s earnings and push its distribution coverage ratio up to 1.5

Key takeaway: Investors love the moves to bolster the company’s asset base and balance sheet

What:Legacy Reserves (NASDAQ: LGCY) jumped 41.9% this week.

So What: Key driver: Investors sense

something is up Legacy Reserves surged this week

on no news Higher oil prices likely played a

partial role in this move However, the upstream MLP also

benefited from news-driven catalysts at other MLPs, including Memorial Midstream Partners

Now What: Investors seems to be banking on

Legacy making a strategic announcement soon to bolster its balance sheet

That said, it appears investors will have to wait until the company reports first-quarter results on May 4 to find out what it is planning to do

Key takeaway: Investors are hopeful this upstream MLP will have some good news next week

This could be the next billion-dollar iSecret