Introduction
The focus on purchasing limited partnership interests in oil and gas ventures which operate as publicly traded partnerships is the popular trend today because of the obvious benefits for investors. That is why, it is necessary to discuss and analyze the associated benefits and weaknesses of the operations with references to such partnerships performed in the oil and gas industry as EV Energy Partners, Seadrill Partners, and CVR Refining. In spite of the fact that the focus on limited partnerships is beneficial for investors under definite conditions because of the particular aspects of the passive loss limitation rules, many companies continue to choose investing into limited partnerships as the alternative way of gaining more profits because of a range of benefits proposed by these organizations.
The Benefits of Purchasing Limited Partnership Interests of EV Energy Partners
EV Energy Partners is the partnership focusing on the production of different types of the oil and natural gas properties. EV Energy Partners claims that the investment into the limited partnerships is beneficial for the parties because of combining the traditional limited partnership’s benefits with the advantages of participating in the publicly traded companies such as EV Energy Partners (EV Energy Partners, 2013). The tax implications according to which EV Energy Partners operate differ from the traditional principles according to which the stocks work that is why the promoters of the partnership state that investments into EV Energy Partners can provide many financial benefits for the company as additional ones to the fixed tax advantages (EV Energy Partners: Financial Report, 2013).
The Benefits of Purchasing Limited Partnership Interests of Seadrill Partners
Seadrill Partners work basing on the long-term contracts with prominent oil companies while combining the advantages of the partnership structure and the developed holding company. The promoters of Seadrill Partners work out their strategy to attract more investors while stating emphasizing such benefits of the partnerships as the absence of taxes at the company level. As a result, the taxation on dividends is based on the more advantageous principles which attract more investors to participate in the partnerships (Seadrill Partners, 2013; Seadrill Partners: Financial Report, 2013).
The Benefits of Purchasing Limited Partnership Interests of CVR Refining
While developing the promotion strategy, the leaders of CVR Refining pay attention to the fact that this limited partnership organization focus more on refining and related logistics assets than other partnerships in the sphere, as a result, the partnership’s cost of capital can be discussed as lower, and the advantageous tax conditions are obvious. The partnership’s promoters draw the investors’ attention to the fact that individual tax rates of investors are taken into account while discussing the corporate income taxes (CVR Refining, 2013; CVR Refining: Financial Report, 2013).
Conclusion
In spite of the fact that EV Energy Partners, Seadrill Partners, and CVR Refining can propose similar advantageous conditions for the investors in relation to the tax policies because of the three organizations are discussed as the limited partnerships, the similarities in determining the taxable income can be discussed as beneficial while combining with the companies’ unique strategies.
References
CVR Refining. (2013). Web.
CVR Refining: Financial Report. (2013). Web.
EV Energy Partners. (2013). Web.
EV Energy Partners: Financial Report. (2013). Web.
Seadrill Partners. (2013). Web.
Seadrill Partners: Financial Report. (2013). Web.