What Is The Value Of Master Limited Partnerships?
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A Master Limited Partnership (MLP) is a pass-through structure available primarily to companies involved in the exploration, development, production, processing, refining, or transportation of natural resources. This paper will evaluate the policy impact of MLPs and whether the structure has met the expectations of policy makers in three critical areas. First, this paper will evaluate the consequences of permitting natural resource MLPs for Federal tax revenues. Second, the impact of MLPs on the oil and gas industry and the wider U.S. economy will be evaluated. Finally, this paper will consider the effects on corporate governance from adopting the MLP structure. These three areas will be discussed in the context of arguments made in favor of MLPs during the late 1980s when lawmakers questioned the need for the structure.