Market Trends 2019/20: Master Limited Partnerships

Summary

This practice note will examine the recent trends regarding master limited partnerships (MLPs) beginning with the continuing consolidation occurring in the industry and presenting an overview of notable transactions. It will then discuss other recent trends including the continuation of Incentive Distribution Rights (IDR)-related transactions, legislative developments as well as distribution activity and conclude by offering an outlook for 2020. Continuing to face strong headwinds from commodity prices, MLPs had a defining 2019. Many upheld capital discipline and successfully generated sufficient cash flow to maintain or even grow distributions. Others have continued to struggle in the current environment, especially those focused on gas gathering and processing.