3 MLPs That Could Disappear in 2018
Master limited partnerships (MLPs) have been slowly disappearing. This past year saw a couple more vanish from the public landscape, with ONEOK Partners among the largest after its parent ONEOK (NYSE: OKE) bought all the units it didn't own in a $17.2 billion deal. Before that, Targa Resources (NYSE: TRGP) bought out its MLP and Kinder Morgan (NYSE: KMI) acquired all three of its public entities.
Several factors played a roll in these roll-ups, though the main one was a desire to cut costs -- namely, the expensive incentive distribution rights (IDRs) that MLPs pay their parent. In fact, most MLPs that didn't complete a roll-up transaction with their parents have cut deals to rid themselves of those fees. That said, there are a few stragglers out there still paying these high costs to their parents, with three appearing likely to go the buyout route to get them eliminated.
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Source: Fool.com