What Are Master Limited Partnerships (MLPs)?

Many energy companies have assets that generate a consistent income over time. For instance, a natural gas pipeline will transport a predictable amount of gas through it each year, generating very stable revenues. These stable revenues often lead to a distribution of earnings to shareholders in the form of a dividend. Unfortunately, investors are double taxed when standard corporations issue dividends – once when the company earns the revenue (corporate income tax) and once when the dividends are paid out (personal income tax). Master limited partnerships (MLPs) solve this problem by eliminating double taxation for revenues derived from qualified sources – as determined by the U.S. Internal Revenue Service. These sources include almost all activities associated with the production, processing or transportation of oil, natural gas and coal assets in the U.S. [for more MLP news and analysis subscribe to our free newsletter].

Posted in Academic Research, Commodity ETFs, Commodity Producers, Energy, MLPs, Natural Gas, WTI | Tagged , , , , , , , , , | 4 Comments

Inside the Dividend Darling YMLP: Q&A With Darren Schuringa

Darren Schuringa is the founder of Yorkville Capital Management, a Global Investment Performance Standards (GIPS) Compliant Registered Investment Adviser (RIA) who offers research depth on MLPs that often exceeds existing industry efforts. Yorkville Capital’s sister company, Yorkville ETF Advisors, launched the Yorkville High Income MLP ETF (YMLP) in 2012. The fund that tracks the Solactive High Income MLP Index and focuses primarily on high quality yield opportunities in the commodity MLP segment with investments in natural resources, marine transportation, propane, and exploration & production partnerships. It employs a rules-based investment strategy that emphasizes quality and quantity of distribution by placing current income, distribution coverage ratio and distribution growth foremost [for more MLP news and analysis subscribe to our free newsletter].   

Posted in Actionable Ideas, Asset Allocation, Brent Oil, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, Natural Gas, WTI | Tagged , | 3 Comments
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