Skip to Content
Stock Strategist

Patience Will Reward Upstream LP Investors

Upstream limited partnerships are down--but not out.

Mentioned: , , , , , , , ,

Let's say you buy tickets to the greatest party of the year. There will be music, dancing, free refreshments, and U2 might make an appearance if Bono can make it back from his latest meeting with the U.N. Security Council. Then, on the day of the party, you hear a rumor that the high-priced tickets are now getting sold at steep discounts. Looks like the ticket sellers are worried no one's going to show. Your best friend calls and says the rumors must be true. He went to the party and the deejay was still getting set up. The refreshments weren't free, after all. So you bemoan your wasted tickets, and you call all your friends and tell them not to bother going to the party.

Glory Days for LPs...
In a Stock Strategist article published last summer, we discussed the growing buzz around upstream oil and natural-gas limited partnerships (LPs). The upstream LPs were being afforded premium valuations because of their acquisitive growth prospects and their tax advantages. Exploration and production companies were looking at LPs as a way of monetizing mature assets via spin-off or sale. Many new entrants were expected to come to market.

Kish Patel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.