MLP Structural Simplifications: Part 2 – IDR Eliminations
In recent years, we’ve seen MLPs move to eliminate IDRs, as several management teams have acknowledged that IDR structures become unsustainable over time. In today’s post, we look at how IDR...
What Happened in October: for MLPs, Money Talks and BS Walks
October was all about MLP cash: who increased distributions, who kept them flat, who didn’t increase as much as expected, and through it all, investor expectations mattered more than numbers.
The Upside of MLP Distribution Cuts
Growing distributions were once a cornerstone of the MLP story. As times have changed, many investors have begun putting more emphasis on balance sheet stability and conservatism. Is distribution...
Finding Value in MLP IDRs
IDR elimination has been the latest trend in MLP simplification. The value investors (and GPs) place on them depends on the individual company and its outlook. Sometimes free is the right price.
What Happened Last Week in MLPs: Consolidation and Simplification Highlights the Waning Importance of Dropdown Stories
Having a strong sponsor and dropdown story are no longer enough to outperform in the MLP space. As announcements by DPM and MPLX highlight, IDR elimination is what everyone wants to see.
What Happened in October: 3 Challenges for Dropdown MLPs and 3 Ways Their Parent Companies are Helping
Dropdown names once handily outperformed other MLPs. Now, following a year of underperformance, their parent companies are stepping in to help boost valuations.