In April, the Alerian MLP Infrastructure Index (AMZI) gained 1.4% on a total return basis, as compared to the S&P 500, which fell 0.6%. Top performers for the month were Sunoco Logistics Partners LP, which gained 7.6%; Energy Transfer Partners LP, which was up 5.8%; and Plains All American LP and Boardwalk Pipeline Partners LP , both up 4.4%. Buckeye Partners LP was the worst performer of the month, down 7.7%. Moody's changed its outlook on BPL from stable to negative, reflecting concerns about high leverage due to recent large acquisitions.

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During the last distribution quarter, out of the 25 MLPs in the Alerian MLP Infrastructure Index, 18 MLPs (or 72%) increased their distributions, 7 MLPs (or 28%) have kept distributions constant, and no MLPs have cut distributions. All in, the weighted average quarter-over-quarter increase was 1.9% (or roughly 7.7% annualized).

During the month, several organic growth projects were proposed and announced that would provide additional take-away capacity from high producing areas. Oneok Partners LP announced plans to build the Bakken Crude Express Pipeline, a $1.5- to $1.8-billion 1,300-mile crude oil pipeline from the Bakken shale in North Dakota to Cushing, Oklahoma. Construction is expected to begin in late 2013 or early 2014 and be completed by 2015. Additionally, Oneok plans to invest $140- to $160 million in natural gas gathering and related infrastructure in the Bakken.

Farther south, in Colorado, Enterprise Product Partners LP, Anadarko Petroleum Corp., and DCP Midstream Partners LP announced an agreement to construct the Front Range Pipeline, a 435-mile natural gas liquids pipeline from the Denver-Julesburg Basin in Colorado to Skellytown, Texas. The pipeline will have connections to the Mid-America NGL pipeline system, which is owned by Enterprise, and the recently announced Texas Express Pipeline. Initial capacity is expected to be 150,000 barrels (bbl.) per day and the pipeline is expected to begin service in fourth-quarter 2013.

Even farther south, in Texas and Oklahoma, Oneok plans to invest $340- to $360 million in a new gas gathering and processing plant and upgrade its existing gathering and compression infrastructure in the Cana Woodford shale in Oklahoma. Sunoco Logistics, the West Texas Gulf Pipe Line Co., and Mobil Pipe Line Co. commenced a binding open season for Project West Texas-Nederland Access, which is expected to transport 40,000 bbl. per day of crude oil from West Texas to Nederland, Texas, roughly 22 miles southeast from Beaumont, Texas.

Soon after Energy Transfer Equity LP and Southern Union Co. completed their $2-billion merger, Energy Transfer Partners LP announced that it has entered into a definitive merger agreement to acquire Sunoco Inc. for $5.3 billion. Following the close, Energy Transfer will own Sunoco's general partner interest and incentive distribution rights in Sunoco Logistics Partners (SXL), a 32.4% interest in SXL limited partner units, and Sunoco's branded 4,900 retail business locations in the U.S.

MLPs continue to build the energy infrastructure network that connects energy demand centers in the U.S. to the increasingly robust supply basins. As the asset class matures, projects grow larger and established infrastructure footprints begin to overlap, the industry trend has been towards mergers and joint ventures rather than price wars.

Maria Halmo and Emily Wang, CPA, are directors for Alerian, an independent indexing company that provides objective market information. More than $7 billion is directly tied to Alerian's indices, which include the leading benchmark of MLP infrastructure equities: the Alerian MLP Infrastructure Index (AMZI). For more information, please visit www.alerian.com