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.
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]