Master Limited Partnership Services
Solutions for an evolving marketplace
Master Limited Partnerships (MLPs) have proved in many cases to be an efficient vehicle for financing and operating the midstream assets used to provide the transportation and processing of the natural gas and crude oil produced. Combined with historically low interest rates, MLP investments have become very attractive to retail, and increasingly to institutional investors.
Top trends affecting MLPs:
- As a result of the exponential growth in the U.S. shale plays, midstream businesses are expanding pipeline and gathering infrastructure, as well as processing and fractionation capacity
- Growing liquids production in the U.S. and Canada, complemented by the rising petrochemical demand for feedstock derived from natural gas processing, are driving midstream investments and financing needs
- In Canada, businesses are investing in new pipelines to export crude production from the rich oil sands to the U.S. and Asia
- Potential U.S. exports of liquefied natural gas (LNG) could result in additional domestic gas production, and related midstream investments in transportation and processing capabilities
- The industry continues to face the possibility that Congress may repeal the pass-through tax treatment for MLPs
- Private equity investors are becoming more active in the midstream space, potentially making capital available for attractive projects in the near term
We believe the road to becoming an MLP is divided into three distinct phases:
- Evaluation of Strategic Options
- Execute and Sustain
Going public can be a long, resources intensive, and complex process that may present a challenging road ahead. We can call on our deep and diverse technical and industry experience to tailor an approach that fits your specific needs. Our specialists have extensive experience in advising MLPs in every state of the life cycle.
Learn more by downloading the Master Limited Partnership Services brochure.