Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® MLP Market Cap Index

Rhea-AI Summary

On February 19, 2021, Cushing Asset Management and Swank Capital announced a change in constituents for the Cushing MLP Market Cap Index. TC PipeLines, LP (NYSE: TCP) is set to merge with TC Energy Corporation (NYSE: TRP), leading to TCP ceasing public trades. A special unitholder meeting is scheduled for February 26, 2021, to vote on the merger. If approved, Black Stone Minerals, L.P. (NYSE: BSM) will replace TCP in the Index starting March 1, 2021. This change will not affect other constituents.

Positive

• Black Stone Minerals will gain inclusion in the Cushing MLP Market Cap Index, potentially enhancing visibility and investment interest.
• The index maintains a float-adjusted market capitalization approach, ensuring a balanced representation of midstream companies.

Negative

• The merger of TC PipeLines with TC Energy may lead to reduced trading liquidity for TCP's common units prior to the merger approval.
• The transition of TCP out of the Index may lead to reduced investor interest in TCP until the merger is finalized.

DALLAS, Feb. 19, 2021 /PRNewswire/ -- Cushing^® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to the constituents of The Cushing^® MLP Market Cap Index (the "Index"). On December 14, 2020, Index constituent TC PipeLines, LP (NYSE: TCP) entered into an Agreement and Plan of Merger ("Merger Agreement") with TC Energy Corporation (NYSE: TRP) and affiliated companies that would result in TCP common units ceasing to be publicly traded, subject to the approval of the holders of TCP common units. A special meeting of the unitholders of TCP will be held on February 26, 2021, for the purpose of voting on the Merger Agreement. Per the Index's methodology guide, this event will result in a constituent replacement. Accordingly, after the market closes on February 26, 2021, and effective on March 1, 2021, Black Stone Minerals, L.P. (NYSE: BSM) will replace TCP as a constituent of the Index at TCP's then-current weight.

There will be no changes to the remaining constituents of the Index due to this event.

ABOUT THE CUSHING^® MLP MARKET CAP INDEX

The Cushing^® MLP Market Cap Index provides a benchmark that is designed to track the performance of widely held midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). The Index is weighted on a float-adjusted market capitalization basis, with the weight of each constituent capped at 7.5% at rebalance. The Index price level is calculated by S&P Dow Jones Indices while the constituents are selected from the entire universe of publicly traded Midstream Companies. The Cushing^® MLP Market Cap Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CMCI".

ABOUT CUSHING^® ASSET MANAGEMENT AND SWANK CAPITAL

Cushing^® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts, providing active management in markets where inefficiencies exist.

Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing^® 30 MLP Index (Bloomberg Ticker: MLPX) and The Cushing^® MLP High Income Index (Bloomberg Ticker: MLPY). For more information, please visit http://www.cushingasset.com/indices.

Contact:
Jon Abel
214-692-6334
www.cushingasset.com

The Cushing® MLP Market Cap Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P^® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.

 

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SOURCE Cushing® Asset Management, LP and Swank Capital, LLC

FAQ

What is the significance of the Cushing MLP Market Cap Index change?

The index will replace TC PipeLines, LP (TCP) with Black Stone Minerals, L.P. (BSM) on March 1, 2021, following TCP's merger with TC Energy Corporation (TRP).

When will the unitholder meeting for TCP's merger take place?

The special unitholder meeting for TC PipeLines, LP is scheduled for February 26, 2021.

How does the Cushing MLP Market Cap Index operate?

The index tracks the performance of midstream energy companies and is adjusted based on float-adjusted market capitalization.