While oil and gas prices remain low and investments are negatively impacted, investments in master limited partnerships are gaining value, according to Pittsburgh Tribune-Review.

Master limited partnerships (MLPs) are investments that include tax benefits as well as the liquidity of stocks. The partnerships allow companies to raise more money to build pipelines and processing equipment while investors receive payouts. The 21 MLP deals of 2014 raised $7.1 billion, in contrast to only four MLPs in 2004 that raised $4 million.

An MLP has a specific purpose that determines how it is affected by oil and gas prices. Midstream MLPs, for example, rely on pipelines and infrastructure, so they generally aren’t affected by decreasing oil and gas prices unless drillers produce less gas, meaning that there isn’t as much gas flowing through the pipelines.

From Pittsburgh Tribune-Review:

“Midstream MLPs typically have long-term contracts in place to move a set amount of gas through their pipelines at fixed prices, largely shielding them from the volatility of commodity prices.”

Via: Pittsburgh Tribune-Review > Energy producers secure funds via master limited partnerships