When Kinder Morgan Inc. announced earlier this year that it was planning on leaving the MLP space by acquiring and moving all of its companies under one corporate umbrella, the first question many had was “Has the MLP bubble burst?” followed by “Is the age of energy consolidation finally upon us?”

Prior to the economic downturn of 2008, there was growing buzz about the possibility of consolidation in the midstream. It isn’t that difficult to understand why: There’s a tremendous amount of money to be made in the sector because of its size, but ironically this size can also serve as a hindrance to growth as it matures by limiting the potential for growth outside of merger and acquisition (M&A) activity.

As the economy has improved and the midstream sector has matured, consolidation movements have begun to take shape. UBS analyst Shneur Z. Gershuni anticipates these moves to continue going forward.

“M&A activity has certainly picked up in 2014 and we believe it is poised to continue as the sector is ripe for consolidation. Rich Kinder hinted that he is looking to be a consolidator following the announcement of Kinder Morgan Energy Partners [LP], Kinder Morgan Management [LLC] and El Paso Pipeline Partners by Kinder Morgan Inc. with his comment, ‘a fertile field to do a little grazing in.’ We concur with Mr. Kinder and also believe more is to come,” Gershuni said in a report titled, “M&A To Be or Not to Be?”

Most of the largest midstream companies utilize the MLP format to grow their companies, but this sector requires consistent growth and many large MLPs are now approaching the end of their rapid growth cycles.

The report also stated that several other factors could lead to consolidation: the potential for interest rates to rise; the potential for Kinder’s comments to set off an “arms race” where management teams consider whether they want to be the acquiring company or the acquired company in future consolidation agreements; and the depreciation benefits at the C corp level. Additionally, there remains the potential for strategic M&A deals that allow for existing assets to expand into new product offerings or into new territories.

Another question remains for the possibility of “the age of MLP consolidation.” Was the Kinder Morgan deal similar to Pennsylvania State University’s entry into the Big Ten in 1990, which turned out to be a harbinger for major collegiate athletic conference realignment that was some time away, or is it akin to the University of Nebraska- Lincoln joining the Big Ten in 2011, which helped create an 18-month period of seemingly constant additions and departures from major conferences?

Should it prove to be the latter, then UBS anticipates that the number of MLPs could be ripe for acquisition based on a quantitative ranking screen and fundamental overlay.

It is difficult to predict when, or if, the MLP sector will begin a period of consolidation, but should it begin, there won’t be a shortage of potential targets or acquisition companies ready to move.