ET - Insights At A Glance: How MLPs Make Money By Segment
By Michael Laitkep
While pipelines are often considered the bread and butter of the MLP space, MLPs provide a wide range of midstream services, from gathering and processing activities near the wellhead to pipelines and terminals supporting distribution of gasoline and diesel further downstream. As discussed last week, most MLPs derive a majority of their cash flows from fee-based activities, which helps insulate midstream from commodity price volatility (read more). One important distinction to note is between gathering pipelines and long-haul pipelines. Gathering pipelines transport hydrocarbons from the wellhead to processing plants, fractionation