While commodity prices could remain volatile for some time, MLPs can potentially attract new investors or reassure existing investors by disclosing the resilient nature of their fee-based cash flows and contracts with investment grade counterparties. Magellan’s operations are made up of a high percentage of fee-based and low risk activities, which it expects to comprise 85% or more of operating margin going forward (see slide below). Each of the company’s major crude pipelines (Longhorn, BridgeTex, and Saddlehorn) has 75% or more committed capacity in 2020, indicating only a modest exposure to spot shipments. These same pipelines have an average remaining contract life of more than four years, which lessens concerns around recontracting risk. MMP boasts a strong customer base as 96% of its crude revenues come from investment grade or split-rated customers. Similarly, for storage, terminalling, and leases, revenue is generated from 75% investment grade or split-rated customers. Despite recent difficulties for MLPs, MMP’s update suggests a disciplined approach to operations and financial positioning pays dividends in a challenging macro environment.