...MLPs Expand in New Ways: The domestic shale production boom and related low gas price environment have encouraged some master limited partnerships (MLPs) to invest in non- traditional areas in the energy value chain. Expanding domestic and global markets for U.S. energy and energy derivative products have also encouraged this trend. In this report, Fitch Ratings identifies and reviews credit considerations that apply to some of the less-traditional MLP asset classes that are now emerging. Non-Traditional MLP Assets: Non-traditional MLP investments of scale include liquefied natural gas (LNG) export facilities, Jones Act shipping, olefins production, contract drilling, rail terminals and water disposal services to support hydraulic fracturing (fracing). In some cases, these operations exhibit favorable characteristics of traditional pipelines, such as longer term contractually supported revenues, strong counterparties and low volatility; others include higher risk elements including elevated...
