RTLR - Keeping It Simple: MLPs Continue To Eliminate IDRs
Incentive distribution rights (IDRs) were once a staple of the MLP space. In recent years, however, midstream MLPs have widely moved to eliminate their IDRs, simplifying their structures and greatly improving corporate governance in the process. Today, we will discuss some of the more recent IDR buyouts, who still has them, and our expectations for the future. For a general explanation of IDRs and how they work, see our 2015 piece on IDR basics here.
Most MLPs have eliminated their IDRs in recent years
Although they were arguably beneficial to unitholders in the early