MMLP - How Consolidation Has Changed The Midstream Landscape
2024-06-26 08:00:00 ET
Summary
- Consolidation has been a multiyear trend in energy infrastructure. U.S. C-Corps accounted for the largest portion of the midstream market cap for the first time at the end of 2023, unseating MLPs.
- Most midstream mergers were between related parties initially, but there have been more examples of third-party M&A in recent years.
- Midstream investors that are primarily interested in income will probably prefer MLP-focused funds. RIC-compliant funds, which own up to 25% MLPs, will appeal to midstream investors desiring diversification, broad representation, and total return.
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How Consolidation Has Changed The Midstream Landscape