Refinery-sponsored MLPs on solid ground

摘要

New York —Refiner-sponsored energy MLPs look protected by strong parent company balance sheets during the current low oil price environment, but some of the speculative midstream master limited partnerships could be on shaky economic ground in 2016 as they look to replenish capital needs. Over the past few years, refiners have used the tax-friendly MLP structure, which does not pay corporate taxes, as a vehicle to “drop in” logistical assets, such as pipelines, storage tanks, and rail cars, which they have used successfully over time for their refinery operations.