The Federal Energy Regulatory Commission’s (FERC) tax ruling on March 15 removed certain benefits for MLPs but it is more likely that the decision merely sped up the recent consolidations of Enbridge Inc. and The Williams Cos., an analyst told Hart Energy.

Michael Underhill, chief investment officer of Pewaukee, Wis.-based Capital Innovations LLC, sees the May 17 announcements as part of a continuing trend.

“The FERC ruling accelerated the consolidations,” Underhill said. “When Kinder Morgan departed the MLP space on Aug. 10, 2014, this was viewed as an anomaly—I was quoted as stating that this was a precursor of things to come. Recently, Kinder Morgan was joined by ONEOK Inc. and Targa Resources Corp. as they have brought in their MLPs.”

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