I have had several questions lately regarding incentive distribution rights, so here is some data on IDRs free of charge, just remember you get what you pay for…
An article will come out soon in Midstream Business Magazine on the subject of IDRs that will feature several quotes from me and some data I pulled together for the article. The original assignment from the editor was something like, I hear a lot about how IDRs are going away, go write an article on the Death of the IDR. But I think I was able to convince the author that IDRs are not dead, in fact of the last 10 MLP IPOs, 9 of them had IDRs, including 100% of the last 10 midstream IPOs. The chart below lists the last 10 MLP IPOs. Note I am not counting MLPs without a stated minimum quarterly distribution (variable distribution MLPs like RNF and UAN).
There are two reasons I can see why IDRs are still prominent for midstream MLPs:
Click below for an excel file with a list of every MLP and its corresponding top IDR tier, current GP % take (not counting any temporary givebacks like $ETE announced yesterday), and some notes on the MLPs that don’t have IDRs. You will note that the MLPs with paying out the most total cash flow to their GP, are in order: KMP (45%), ARLP (40%), ETP (37%), PAA (32%), WPZ (28%).
IDR Data (older Excel versions)
General Thoughts on General Partners