Enterprise Says Dumping Partnership Model May Be Inevitable
- ‘K-1 island is becoming very exotic,’ CFO says of MLP tax form
- Enterprise has repeatedly fielded questions about structure
Photographer: Derick E. Hingle/Bloomberg
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Enterprise Products Partners LP, the biggest master limited partnership by market value, said it could be forced to convert to a corporation if many of its peers in the pipeline industry leave the model behind.
While the company defended its structure, it was the most direct acknowledgment from Enterprise that the MLP model may not be sustainable. Analysts and investors have questioned the company over the past year about a possible conversion.