Master Limited Partnership

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In the energy sector, "MLP" stands for Master Limited Partnership. It is a unique corporate business structure that is publicly traded on major stock exchanges, combining the tax advantages of a private partnership with the liquidity of a corporate stock.How Energy MLPs WorkMost MLPs operate in the energy and natural resource industries, typically falling into one of three categories:

Midstream: These are the "toll-takers" of the oil and gas industry. They focus on the gathering, processing, transportation (via pipelines), and storage of crude oil and natural gas.

Upstream: These are companies focused on the exploration, drilling, and production of oil and gas.

Downstream: These companies handle the refining, marketing, and distribution of petroleum products to end-users.