But, he said, it’s not clear whether C-corp investors are taking into account the fact that at some point those companies will no longer get the tax deferrals they were granted when they initially converted.
“The tax-free holiday that the C-corps are enjoying right now, it is a temporary holiday,” he said. “There was a price that was paid for the C-corps to be where they are today.”
If Enterprise does elect to become a corporation, it could take two to three months for the company to complete the transition, subject to approval from its unitholders, Fowler said.
“We take a look at this every month,” he said.
This article was provided by Bloomberg News.