Toll Road Model

The specialized corporate structures called Master Limited Partnerships (MLP’s) have become part of the landscape for midstream energy companies. They have helped provide efficient access to investment capital to build out infrastructure that is now delivering new shale basin natural gas and oil production to market. MLP investors have enjoyed high yield returns from these tax-advantaged companies with low risk toll road income. Newer MLP structures appear to be moving away from the safety of toll road income into riskier commodity price exposure. Today we investigate this trend in the MLP market.