MLP Basics III – IPOs

It's been almost 20 months since the last MLP IPO (May 2008). 2009 was the third year since 1995 that there were no MLP IPOs, the other two years being 1997 and 2003. There are no IPOs in the registration process as of now, but the strength of the equity markets leads me to believe that at least 1 MLP will go public in 2010. I thought it might be

MLP Basics II – Distributions / IDRs

Here is my second in the series on the basics of MLPs.  This post describes distributions and IDRs, what they are and how conventional MLPs are structured. MLP Ownership and Distributions MLPs generally have two classes of owners:  the general partner (GP) and the limited partners (LPs).  The GP is typically owned by a major natural resources

MLP Basics I: An Introduction to Master Limited Partnerships

I plan to post a series of entries on the basics of MLPs and archive them on this site as a resource for anyone interested.  I figured I would start with the most basic concepts of MLPs. Master Limited Partnerships (MLPs) are limited partnerships that are publicly-traded on US securities exchanges (most are on NYSE or NASDAQ).  The LP structure allows

MLPs for Estate Planning

I posted the following to a discussion board for an estate planning magazine, the editors liked it, so I'm reposting here. Master Limited Partnerships (MLPs) are excellent tools for estate planning: MLP distributions (around 8% yield right now) are considered return of capital, meaning that distributions reduce your basis in the MLP, while allocated

Is KMP too Big to Grow?

As this title implies, I set out to make the case that Kinder Morgan Energy Partners (KMP) is too big to sustain its annual per unit distribution growth rate.  I invest in and focus on smaller MLPs that distribute much less of their overall cash flow to their general partner.  As a result of incentive distribution rates, KMP’s general partner receives

MLP Blog – First Post

Welcome to my blog on MLPs.  Because it's such a small industry dominated predominantly by wealthy retail investors that learned about MLPs from their brokers, there is not much information available on MLPs outside of the big wirehouses.  People often come to me when they want information on MLPs.  My good friend Kareem Hamady came to me recently and