Over the last 35 years, Master Limited Partnerships - commonly referred to as MLPs – have become a popular investment vehicle in the energy space. These publicly traded limited partnerships are attractive to investors because they tend to generate strong returns, have favorable tax implications and are often shielded from inflation. Over the years, Congress has enacted legislation to stipulate qualifying sources of income for MLPs. Today, most MLPs are in the energy industry – primarily in the midstream sector. However, some MLPs exist in the upstream and downstream space as well.
The partnership could serve as a launching point for continued growth in the region, analyst says.
Only a portion of the Utica and Marcellus pipeline was up for sale, but a premium bid worth hundreds of millions changed CEO Gary Evans’ thinking.
Crude prices remained flat at $60/bbl, while NGL prices continue to sag. This decoupling is expected to return as the norm going forward.
Energy XXI will receive $245 million in cash for about 150 miles of pipeline from CorEnergy Infrastructure Trust but as part of the deal will lease and operate the pipeline.