Past Created Master Limited Partners (MLPs)

Yesterday the stock market suffered its worst day in over a year. By May 21, 2010, the Euro has dropped by 15% and the U.S. stock market has declined over 10%. Workers in Greece are striking, causing violence. On a more positive note, my lovely daughter Perry graduated from college.

On the way into my office in Wayne PA, I drove by the Williams natural gas pipeline facility in Malvern. It is a huge pumping station that sends natural gas Gain Reduction  returning across their state and into areas where it connects with other pipelines doing the same thing. I drive by this complex virtually every day. Williams, a multi billion dollar master limited partnership (MLP), is just a dependable pipeline operator (according to Wells Fargo) with an extended history of paying its owners steady and growing returns. A manager is someone who owns the Williams MLP which trades on the New York Stock Exchange.

I got out of my car and listened to the steady hum of the compressor engines which propel natural gas through hundreds of miles of pipelines. As a manager of Williams (and other pipelines), that humming sound implies that my company is moving natural gas across the country and paying me the toll.

I listened carefully to the hum of the engines and looked at the massive pumping station with the sun reflecting off the communications tower. The issues with Greece and the Euro didn’t seem to change anything here. I don’t think the issues with Europe, the Euro and the stock market affect the operations of any solid U.S. pipelines.

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