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Chickasaw MLP Separate Account

The Chickasaw MLP Separate Account – a separately managed account portfolio strategy focused on investments in Midstream energy infrastructure – is a flagship solution among our diverse range of investment strategies.

Traditionally structured as MLPs (Master Limited Partnerships), Midstream companies provide essential services in the transportation, processing and storage of energy products. Their assets include major pipeline systems that deliver products such as natural gas, crude oil, refined fuels and other energy products to end markets. Nearly all other critical infrastructure is directly dependent upon the products that Midstream companies deliver.

Distinct Opportunity

The Midstream sector offers several key attributes that make for a compelling infrastructure investment. Historically, Midstream investments have shown comparable performance relative to broader equity markets with lower correlation to other asset classes (view slide). Additionally, these companies may provide attractive current yields through quarterly cash distributions, which have typically remained stable due to fee-based revenue models tied to U.S. energy demand.

Midstream energy companies that have elected to be taxed as partnerships benefit from partnership tax treatment – avoiding the double taxation seen in corporations. Driven by a combination of yield and growth, these companies are positioned to capitalize on potential expansion in both traditional and transitional energy infrastructure.

The revenues of Midstream energy companies are largely unaffected by commodity price fluctuations due to capacity reservation fees. This stability makes these securities a potential inflation hedge due to market rate adjustments tied to inflation measures in many customer contracts, the rising replacement cost of long-lived assets and a variety of other factors.

Unrivaled Experience

With three decades of experience investing in Master Limited Partnerships – which we believe is the most in the U.S. – Chickasaw portfolio managers stand on the leading edge of Midstream energy infrastructure investment management. The tenure of our team reaches back to the earliest days of the structure. We have played a direct role in bringing many of these entities public, have introduced a number of innovative capital funding techniques and harness our longstanding relationships with top management teams to provide an established process for performance in the space.

We have educated hundreds of investors and even “wrote the book” on MLPs – “Master Limited Partnerships” In The Handbook of Infrastructure Investing, edited by Michael D. Underhill, 81-110. New York: John Wiley & Sons, Inc., 2010.

Long-Standing Proficiency

Chickasaw uses a disciplined approach to select securities positioned to potentially offer attractive yield, distribution growth and stability. Our strategy is built on deep industry knowledge and a rigorous research process that evaluates financial health and growth prospects, along with the underlying fundamentals of the energy infrastructure sector. This approach aims to deliver consistent income and total return, making it an appealing option for investors seeking exposure to the energy infrastructure sector.

Chickasaw Capital Management’s experience, proficiency and focused strategy make the Chickasaw MLP Separate Account a strong option for those looking to diversify their portfolios with a specialized investment in an established energy infrastructure solution.