Posts from Keith Bailey

For the past decade or more, master limited partnerships (MLPs) have been one of the most popular forms used by energy companies to capitalize themselves and one of the most rewarding for their investors. These investments offered income, in most cases steadily growing, at a time of historically low interest rates.  They also offered capital appreciation as the sector more often than not was one of the best performing in terms of equity returns.  So what explains the rapid collapse in value that has been experienced over the past few months?  Today in Part 2 of RBN’s series on MLPs, we delve further into that question, looking at Incentive Distribution Rights (IDRs) and our friends at Alerian provide a list of 118 MLPs including the “IDR splits”.


Rusty’s Introduction

As a general rule here at RBN, we try to avoid hot button issues like environmental policy.  We have good friends on all sides of these issues, so our practice has been to steer clear of debates where the relationship between facts and outcomes can be subject to so much interpretation.  However, today we make an exception for a blog by Keith Bailey, a highly respected leader in our industry who serves on the boards of MarkWest Energy, Aegis Insurance Services, Cloud Peak Energy, Apco International Oil and Gas, and by the way, was CEO of The Williams Companies when I worked for that company more than a few years back.   Today Keith contemplates the issue of climate change from the vantage point of someone who has been around the track in energy markets and thinks deeply about the big picture issues.