About MLPs

MLPs are publicly-traded partnerships that offer an attractive structure for some businesses by combining certain tax benefits of a partnership with the potential liquidity of publicly traded securities. Typically, MLPs:

• generate stable cash flows;
• are valued on a yield basis; and
• distribute a majority of their cash flows each quarter to their equity investors in a highly predictable and tax-efficient way.

As partnerships, MLPs generally do not pay corporate-level taxes, thereby enhancing both the cash flow available for distribution and the total enterprise value. They create a strong alignment of interests between management and their equity holders, as management receives robust incentives to increase distributions through organic growth and acquisitions, and provide an attractive acquisition currency via publicly-traded MLP equity securities.