Deals

Behind Cannibalization of MLPs Like Oneok Is a Need to Cut Costs

  • Simplification across midstream sector won’t kill off MLPs
  • There’s a race among pipeline owners to reduce capital costs
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First came Kinder Morgan Inc., then Targa Resources Corp. and now Oneok Inc.Bloomberg Terminal -- pipeline giants keep buying up their master-limited partnerships, once darlings of the energy world.

Their moves raise a question: Are MLPs -- tax-advantaged, publicly traded partnerships that have proliferated in the past decade -- dying out?