MLPs Pump Up The Volume

Master limited partnerships are an alternative to the standard C-corporation business model. They are rapidly consuming a growing share of the 500,000 miles of oil and natural gas pipelines in the U.S.

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MLPs don’t pay taxes. In exchange, they pass their cash flow through to investors via dividend-like payouts called distributions. They can own only natural-resource-based assets.

Workers constructing the Rockies Express Pipeline load pieces of pipe from a train car onto a truck in Laramie, Wyo.

Analysts debate just how much of total U.S. pipeline assets MLPs currently own. Some say 25%. Others say 50%. Whatever the share, all agree that it is increasing rapidly as more and more companies shift pipeline assets off corporate balance sheets and into MLP partnerships. [Read the full article]

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