Swank Capital
MLP Asset Class | Investment Characteristics
Energy Infrastructure MLPs
“Midstream” MLPs build and operate pipelines and storage facilities for the transmission of domestic energy supplies critical to the nation's economy. These MLPs own the infrastructure that connects the crude oil and natural gas - at the wellhead - to the end user. They represent minimal exposure to actual commodity price risk with only moderate sensitivity to most economic shifts.
- Strong Cash Flow: Cash flows generated have historically been stable and predictable
- Potential Income: Majority of cash flows are distributed to unitholders
- Tax Conscious: Distributions are largely a return of capital
- Hedge Against Inflation: Distributions have grown over time, historically providing an effective inflation hedge