The money manager points out that most MLP oil contracts are long term, so temporary short-term price swings have no effect on revenue. Additionally, the majority of MLP revenue comes out of moving natural gas and other natgas liquids, which are tied to volumes and not price of the commodities.
Looking ahead, fundamentals are still in place since “there is far from enough infrastructure to serve the domestic energy industry, even if it slows a bit,” Howard added. [MLP ETFs Reveal Long-Term Staying Power]
JPMorgan Alerian MLP Index ETN
For more information on master limited partnerships, visit our MLPs category.
Max Chen contributed to this article.