The Case for Investing in Master Limited Partnerships (MLPs)

Master Limited Partnerships (MLPs) are publicly listed limited partnerships that trade much like the shares of a public corporation. MLPs are flow through entities whose income stream is taxed in the hands of its unitholders and as such, are not subject to state or federal income tax at the partnership level. The case for MLP ownership is compelling. In its simplest form, an investment in the MLP asset class represents an investment in the future growth of the U.S. energy infrastructure sector. Changing energy supply dynamics (such as the development, processing and transportation of unconventional energy supplies) and population movements will necessitate billions of dollars in infrastructure investment. The MLP sector is well positioned to provide much of the investment dollars needed for the anticipated build out.