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12 Pages

US M&A - the rise of the MLPs

US M&A - the rise of the MLPs

Report summary

Master Limited Partnerships, or MLPs, have become major players in the US upstream M&A market.  In 2013 ytd, MLPs account for 36% of acquisition spend onshore US Lower 48.  The pending US$4.3 billion takeover of Berry Petroleum by LINN Energy is the largest upstream deal of the year, globally.    MLPs are publicly-listed entities which do not pay corporation tax, but pay a high proportion of cash earnings out in the form of regular, dividend-like ‘distributions'.  Maximising distributions is...

What's included?

This report includes 2 file(s)

  • US M&A - the rise of the MLPs PDF - 652.70 KB 12 Pages, 1 Tables, 10 Figures
  • The rise of the MLPs August 2013.xls XLS - 149.50 KB


This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • Executive summary
  • What is an MLP?
  • MLPs in the energy industry
    • Which MLPs are active in upstream M&A?
  • The Upstream MLP business model
    • Favourable market conditions have enabled growth
      • Higher yields underpin investor interest in MLPs
      • Low cost of capital helps to fund acquisitions
      • What types of assets are MLPs targeting?
      • What does this mean for C-Corps?
        • Supporting liquidity and valuations
        • Restructuring opportunity?
      • What might halt the rise of the MLPs?
        • Tightening monetary policy could raise the cost of capital
        • Falling commodity prices would (eventually) hit distributions
        • Incentive Distribution Rights could cap growth
        • Limited Institutional Investment
        • Change in tax code
        • SEC investigation into LINN Energy
      • Appendix 1: Recent asset trends in Upstream MLP deals
        • Permian region
        • Mid-Continent region
        • Gulf Coast region
        • Rocky Mountains region
        • West Coast region
    • Unconventional strategy case study - Atlas Resource Partners
  • Appendix 2: MLP basics
    • Laws and Tax codes governing MLPs
  • Appendix 3: List of Upstream MLPs

In this report there are 11 tables or charts, including:

  • Executive summary
  • What is an MLP?
  • MLPs in the energy industry
    • Upstream MLP spending in the onshore US Lower 48
    • US M&A - the rise of the MLPs: Image 2
  • The Upstream MLP business model
    • US M&A - the rise of the MLPs: Image 3
    • Enterprise value and capital structure of US Upstream MLPs
    • Upstream MLP acquisition spend by primary resource
    • MLP acquisition spend by asset status (2010-2013)
    • Acquisition costs ($/boe, proved) - MLPs vs. market
    • MLP acquisition spend by seller Peer Group
    • US M&A - the rise of the MLPs: Image 9
    • C-Corp USL48 onshore portfolio analysis: near-term unit capex vs. reserves life, by company, by play
  • Appendix 2: MLP basics
  • Appendix 3: List of Upstream MLPs
    • US M&A - the rise of the MLPs: Table 1
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