COVID Pandemic Has Upended MLPs

Income-generating assets have had a challenging time since the Covid-19 pandemic began. Popular income vehicles like master limited partnerships (MLPs) have been especially hard-hit. The plunge in energy prices negatively impacted MLPs, because the majority of companies structured as MLPs transport and store oil and natural gas. A Brief History of MLPs The first master limited partnership (MLP) was formed by Apache Oil Company in 1981. In 1987 Congress legislated the rules for publicly traded partnerships in Internal Revenue Code Section 7704.…