Energy Master Limited Partnerships (MLPs)

Short Description: 
VRC is a leading provider of valuation and appraisal services to public and private energy and natural resource-related master limited partnerships (MLPs).

A member of the National Association of Publicly Traded Partnerships (NAPTP), VRC is a leading provider of valuation and appraisal services to public and private energy and natural resource-related master limited partnerships (MLPs).

The formation and operation of MLPs give rise to numerous valuation/appraisal needs in support of various tax and financial reporting requirements, (e.g., Internal Revenue Code (IRC) Sections 704(c), 734(b), 754 and Accounting Standards Codification (ASC) 805, 350, 360). Upon formation and prior to an IPO, MLPs must establish the fair market value of the property (i.e., tangible and intangible assets) being contributed to the MLP. These values are used by the MLP and its tax and legal advisors as input to the MLP’s tax shield calculations and for comparison to the assets’ initial tax bases. 

Post IPO, follow-on acquisitions are essential to an MLP’s growth and future cash distributions. Such acquisitions must be accounted for under ASC 805, Business Combinations, which requires a determination of the fair value of the assets acquired in support of an allocation of the purchase cost for the acquisition. Additionally, MLPs often utilize a third party valuation expert to assist in conducting periodic impairment tests for goodwill and other intangibles under ASC 350, Intangibles and Other Goodwill, and for long-lived assets under ASC 360, Plant, Property and Equipment.

VRC’s 25+ years of experience serving the MLP community and our reputation as a leading, independent international valuation firm help us provide our clients with high quality and cost-effective solutions to meet their valuation and appraisal needs. 

  • VRC valued certain tangible and intangible assets contributed by NiSource Inc. in support of the tax reporting requirements for the formation and IPO of Columbia Pipeline Partners LP.
    Valuations for Tax Reporting
  • VRC valued tangible and intangible assets contributed by CenterPoint Energy, Inc., OGE Energy Corp. and Arclight Capital Partners, LLC in support of tax and financial reporting requirements for the formation and IPO of Enable Midstream Partners, LP.
    Valuation for Tax and Financial Reporting Purposes