Pipeline Billionaires Cling to Partnership Model Others Shun (1)

Sept. 27, 2019, 10:13 AM; Updated: Sept. 27, 2019, 12:56 PM

Pipeline owners that ditched a partnership structure in favor of becoming corporations are performing better than their tax-shielded peers. But that isn’t convincing everyone to convert.

Even though the number of publicly traded master-limited partnerships dwindled by more than one-third in the past four years as enthusiasm for the model waned, a few stalwarts are keeping the structure, saying any possible benefits are overshadowed by the tax hit investors would incur.

With the tax burden—and additional governance measures—that come from converting, even the promise of a higher market value and lower borrowing costs might not be enough to change minds. ...

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