Boardwalk Pipeline Partners: Post Mortem

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About: Boardwalk Pipeline Partners, LP (BWP), Includes: D, DM
by: Michael Boyd
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Michael Boyd
Long/short equity, contrarian, medium-term horizon, mid-cap
Summary

The takeout of Boardwalk Pipeline Partners appears to be proceeding as planned; unitholders get the shaft.

While the call right execution by Loews is a unique circumstance, partnership agreements can be littered with unfair terms that benefit the GP.

Dominion Midstream's recent IDR reset looks like another example, one that has flown under the radar.

These actions damage the reputation of the space, something that impacts even fairly run operators.

Buyer beware! There are quite often unique clauses built into the partnership agreements – one document is rarely like another. When considering an investment in a master limited partnership (“MLP”), it is easy to focus