MLP Ruling

In a surprise ruling, the Federal Energy Regulatory Commission overturned its long-standing policy to allow MLPs ability to recover a tax allowance in its rate base, which could lead to a reduction in tariffs and therefore distributable cash flow, which supports their high dividend payouts.  This primarily impacts natural gas interstate pipeline companies and it is estimated to reduce EBITDA by 1%-5% for those pipelines.  Our analysts are continuing to evaluate the impact of the ruling on the pipeline sector.  We would encourage you to contact United Asset if you have questions on this or any other matter.



US Futures Are Lower To Start The Week
US Futures Are Mixed To End The Week

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