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.
Duff & Phelps experts explore potential, perils of 2015 for sector.
The weak commodities environment won’t be the death knell of shale’s success story, but North American energy industry has hit the reset button.
The agenda aims for safe and responsible energy development and good government while encouraging innovation. Regulations concerning hydraulic fracturing, BOPs and methane emissions are forthcoming.
Industry veteran warns that the downturn could be a three-to-four-year issue—and much tougher than anticipated. "Make sure you have liquidity to 2018," he says.