I have recently been receiving a flurry of more basic questions from advisors who appear to be circling back to the midstream and MLP sector after a long layoff. The questions sometimes reflect implied misconceptions in the question itself, but also reflect how little time advisors care to spend to delve into the nuance of the midstream sector.
Category: MLP Basics
Incentive Distribution Rights Revisited
More than once in the last month, I’ve been asked to review how incentive distribution rights (IDRs) works, and how they impact an MLP. In the earliest days of the blog, I wrote some pieces on the basics of MLPs, including one on IDRs published in December 2009 that you can read here.