MLP History
The Master Limited Partnership ((MLP)) structure was created to allow certain partnerships to gain the liquidity of a publicly traded security, like a stock, while maintaining the tax benefits of a partnership. The MLP structure provides a tax advantage to the business and to the shareholders. MLPs do not pay tax at the company level and distribute the majority of their cash flow to the unitholders.
Apache Corporation created the first MLP in the United States, Apache Petroleum Company, in 1981. Shortly thereafter other energy MLPs were formed, followed