Master Limited Partnerships
Master limited partnership (MLP) investments offer a simple value proposition: tax-advantaged high yields and strong recession-resistant growth potential.
MLPs allow investors to defer much of their personal income tax liability for years into the future or, in many cases, indefinitely. Unlike regular corporations, a master limited partnership doesn’t pay traditional corporate-level tax. Instead, these partnerships pass through the majority of their income to investors in the form of regular quarterly distributions. In other words, 80 to 90 percent of the distribution you receive from the MLP is tax-deferred.
Learn more about how to add master limited partnerships to your portfolio with the latest in-depth analysis in the archive below. For a detailed understanding of the MLPs, including what they do, how they are taxed and the best plays to consider for your portfolio, check out our free guide: MLPs: High Yields and Low Taxes.
Three partnerships have filed S-1 forms with the Securities and Exchange Commission since we last wrote about MLP IPOs.
With the majority of energy-focused master limited partnerships (MLP) having reported quarterly results, we have an opportunity to reflect one of the key trends that emerged from the deluge of financial data: the extent to which the dramatic decline in the price of natural gas liquids reduced firms’ distributable cash flow (DCF) and payout coverage.
In the first installment of this two-part series, we explain why NGL prices will likely remain volatile in coming years. Next week's issue will focus on the extent to which fluctuations in the price of these commodities will impact the 17 publicly traded partnerships that own natural gas-processing assets.
Northern Tier Energy LP (NYSE: NTI) went public toward the end of July, but the number of prospective MLP IPOs remained at 15 after High-Crush Partners LP (NYSE: HCLP) filed its S-1 statement with the Securities and Exchange Commission.
In the past 12 months, 15 prospective publicly traded partnerships have filed registration statements with the Securities and Exchange Commission. But this structure isn't for everyone.
What's driving the sudden surge in downstream MLP IPOs, especially those that own and operate wholesale fuel distribution assets?
Deal flow has picked up for mistream assets in the Marcellus Shale, but acquisitions of upstream properties have stalled because of ultra-depressed natural gas prices.
Our earlier warnings about the pitfalls of exchange-traded notes (ETN) proved more prescient than we could have imagined. Just weeks after we wrote about this topic, JPMorgan Chase decided to temporarily cease creating new shares of a popular MLP ETN.
For income-seeking investors, initial public offerings of master limited partnerships can be a lucrative opportunity to buy into long-term growth stories at favorable valuations.
The recent pullback in the stock market gives investors an opportunity to lock in elevated yields on units of our favorite master limited partnerships.