“While FERC is not changing their MLP tax policy in substance, they made several important changes to the policy which we believe will offer master limited partnership structured pipeline companies a lifeline,” Height Securities analyst Katie Bays wrote in a note to clients, according to Bloomberg.
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The new FERC adjustment is widely viewed as a positive among MLP market observers.
“Simply put, this adjustment could make MLPs viable funding vehicles for energy companies once again, since they could drop down natural gas pipelines to these entities without seeing significant drops in income,” notes Motley Fool.
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