Master limited partnership
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In the
To obtain the tax benefits of a
rents also qualify.The "MLP" and "PTP" terms are commonly used interchangeably, but MLPs are technically a type of limited partnership that conducts its operations through subsidiaries and are not always publicly traded. Most PTPs are organized as MLPs, but a PTP may be organized as a limited liability company that elects to be taxed as a partnership.[1]
History
In 1981,
Section 7704 of the Revenue Act of 1987 limited which businesses could be MLPs, delineating that an MLP must earn at least 90% of its
In the decades since the
Structure
Like all
MLPs pay their
In addition to the traditional governance
Taxation
Because MLPs are not subject to
As a consequence of their
Types of MLPs
Energy MLPs
Because of the stringent provisions on MLPs and the nature of the quarterly required distributions, most MLPs operate oil, natural gas, or refined product pipeline businesses, which tend to generate more predictable income streams. However, many other assets can be operated in an MLP including processing plants, natural resource storage facilities, rail terminals, marine transportation vessels, and refineries, among others.
Examples of MLPs involved in the gathering, processing, compression, transportation and storage of oil and gas include Buckeye Partners, DCP Midstream, Energy Transfer Partners, Enterprise Products Partners, Magellan Midstream Partners, NuStar Energy, Plains All American Pipeline, TC PipeLines, and TransMontaigne Partners. A number of MLPs are dedicated to marine transportation, oil and gas exploration, oilfield services, and downstream refining/marketing/distribution services. MLPs also operate in the propane, coal and biomass industries.[4]
Financial MLPs
A number of companies in the finance, investment and real estate industries operate as MLPs, such as
Other MLPs
Under the rents from
See also
- German law.
References
- ^ National Association of Publicly Traded Partnerships. "Facts & Answers about Publicly Traded Partnerships" (PDF). Retrieved 2018-09-17.
- ^ Resonance Financial (May 28, 2014). "Master Limited Partnerships". RezFin.com. Retrieved July 19, 2015.
- ^ Lee Brodie (October 16, 2012). "Linn Energy Vs LinnCo: Cramer Sorts Out the Confusion". Cnbc.com. Retrieved June 3, 2013.
- ^ a b c "Lists of Current MLPs & MLP Funds – MLPA". www.mlpassociation.org. Retrieved 2018-09-17.