The deal signals that the MLP structure may be a broken model.
Like the rest of the oil and gas industry, Oneok has struggled to produce cash due to lower commodity prices. Oneok is following the developing trend of eliminating a key component of the MLP structure called incentive distribution rights or IDRs.
With oil just above $50 per barrel, IDRs are much less attractive. Oneok could also be trying to get ahead of a Trump tax reform that could cause double taxation on MLPs.
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Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Breaking down an approach to the long side of this biotech stock.
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