Steven Ward

The Nine Best Natural Gas, Oil Pipelines for Income and Capital Gains

I have purchased only one MLP, the old Buckeye Partners that owned an oil pipeline from Canada that serviced Midwest Refineries.
My whole problem is with management taking such a huge cut in the cash flow with nio correspondiing upfront equity stake.
Congress enacted tax benefits for pipeline companies that permitted the MLP structure,however, think of the return the investor would receive if the MLP structure contained a regularly compensated management with the GP comming from board members who were unit holders themselves that had purchased shares in the open market.
Somebody should do that. you don;t need a rocket scientist to run a pipeline company. In fact they are deliberatly designed to be dull with a day out and day in routine. Only issues are rates, FERC and EPA.