Energy companies are divided into three categories: upstream, midstream and downstream. Upstream companies find and drill product, while downstream companies refine and distribute. Midstream operations often include natural gas, but, essentially, it is the transportation, storage and marketing of product and includes many characteristics of up and downstream companies. PennTex Midstream Partners is master limited partnership focused on owning, operating, acquiring and developing midstream energy infrastructure assets and listed on the Nasdaq Market on Thursday. CEO Thomas Karam tells TheStreet’s Jill Malandrino MLPs are a tax-efficient investment that have been around for quite some time. Investors purchase MLP units to provide funds for infrastructure and transportation processing in the oil and natural gas space in return for an attractive yield to the unit holder. Karam says PTXP is a high-growth MLP because not only with the company’s core assets already ramping cash flow, there is also high quality organic growth projects in the near term that over a short period of time will quadruple EBIDTA. While energy markets have been under pressure, Karam explains that coming public on the Nasdaq market is not based on a particular day in the tape since PTXP is building assets for the long term.
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