San Francisco Daily Journal Quotes Michael Mills on Formation of Master Limited Partnership in Energy Company Acquisition

Partner Michael Mills was quoted in an article in the San Francisco Daily Journal titled “Breitburn Energy taps Latham for $1.6B deal.” The article discusses the acquisition by Los Angeles-based oil and gas producer Breitburn Energy Partners LLP of QR Energy LP, a deal that formed the largest-ever-created master limited partnership (MLP) focused on oil production.

According to Mills, MLPs—publicly traded limited partnerships that distribute quarterly earnings to shareholders, a structure that allows them to avoid paying federal and state taxes as would a corporation—are somewhat unusual in the U.S. "They're limited by federal law to companies that develop natural resources," Mills said. In the U.S., "you only find them in the petroleum industry, the oil and gas extraction industry, or in the pipeline industry for the transportation of those products.”