gaining access to the u.s. energy …...investment story: sunoco logistics partners, l.p. (sxl)...

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For Institutional Use Only | Not For Use with Retail Investors

For Institutional Use Only. This material has been prepared by OppenheimerFunds, Inc. for institutional investors only. It has not been filed with FINRA, may not be reproduced and may not be shown to, quoted to or used with retail investors.© 2013 OppenheimerFunds, Inc. All rights reserved.Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008

GAINING ACCESS TO THE U.S. ENERGY RENAISSANCE

GREG BROWNVP, STRATEGIC ACCOUNTS

AUGUST 2013


The MLP Value Proposition

Sector Outlook

Next Steps

AGENDA

On December 3, 2012, OppenheimerFunds, Inc. acquired the assets of SteelPath Capital Management, LLC and SteelPath Fund Advisors, LLC. As of that date, OppenheimerFunds Distributor, Inc. became the general distributor and principal underwriter for each series of The SteelPath MLP Funds Trust.


THE MLP VALUE PROPOSITION


Energy Renaissance

New technologies are unlocking domestic shale reserves of oil, natural gas and natural gas liquids (NGLs)

Infrastructure Growth

MLPs are the preferred structure for building the new infrastructure needed to connect production and consumption

Fee-based Cash Flows

“Toll-road” business models offer attractive income, hard assets offer potential inflation protection

MLP Opportunities


Supply Chain for Energy Products

* Past performance does not guarantee future results. Based on the historical performance of the companies in the MLP sector.

“Toll Road” Business Model Midstream MLPs collect revenue based on the transportation of commodities between producers and consumers

Historical Income Generator Compelling historical yields and distribution growth potential*

Thematic Opportunities Opportunistic investment in the infrastructure required to support the U.S. energy renaissance

Upstream

Crude oil and natural gas production

Drilling

Production

Offshore

Midstream

Transportation and logistics

Pipelines

Terminals

Marine Transportation

Midstream Services

Downstream

Refining and distribution

Oil Refineries

Natural Gas Distribution

Retail Outlets


Fees collected at multiple links along chain

Source: Crosstex Energy

The MLP Value Chain


History of MLPs

Market Capitalization defined by the energy MLP universe. Source: FactSet, Company Filings; For the time period January 1996 – December 2012.

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2

4

6

8

10

12

14

16

18

20

$0

$50

$100

$150

$200

$250

$300

$350

$400

MLP

IPO

sM

LP m

arke

t cap

italiz

atio

n ($

bill

ions

)

Market Capitalization IPOs


Distributions have grown steadily for over a decade

As defined by the Alerian MLP Index (AMZ). Compound Annual Growth Rate (CAGR) is the year-over-year growth rate of an investment over a specified period of time.Source: FactSet; Company Filings; For the time period January 1996 – December 2012. Past performance does not guarantee future results.

Growth of Income Distributions

$0

$5

$10

$15

$20

$25

$30

$35

$40

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Distribution Indexed - 7% CAGR Price Indexed - 9% CAGR

Tota

l Dis

tribu

tion/

Shar

e


Return and Risk Statistics of MLPs and Other Asset Classes

Source: FactSet: June 2003– June 2013.1. Current yield reflects the current distribution/dividend rates (latest annualized quarterly rate). 2. Sharpe Ratio is a ratio of performance to risks.Returns quoted above are not the returns of the Oppenheimer SteelPath Funds. Indices do not include fees or operating expenses and are not available for actual investment. Indices presented are representative of various broad-based asset classes. They are unmanaged and shown for illustrative purposes only. An investor cannot invest directly in an index. Past performance does not guarantee future results.

Please refer to page 33 for index definitions.

Total Annualized Current Correlation Value Sharpe StandardReturn Return Yield1 to MLPs of $1,000 Ratio2 Deviation

MLPs 353% 16.3% 5.7% 1.00 $4,530 0.82 16.6%

REITs 183% 11.0% 3.7% 0.38 $2,830 0.42 25.8%

Utilities 70% 5.4% 3.9% 0.43 $1,696 0.22 13.1%

Russell 2000 148% 9.5% 1.8% 0.46 $2,485 0.40 19.7%

Fixed Income 56% 4.5% 2.2% -0.05 $1,556 0.31 3.6%

Dow Jones 114% 7.9% 1.7% 0.48 $2,142 0.40 13.7%

NASDAQ 129% 8.6% 1.3% 0.52 $2,285 0.38 17.7%

S&P 500 102% 7.3% 2.1% 0.51 $2,022 0.34 14.6%


SECTOR OUTLOOK


Paradigm Shift in U.S. Energy Supply

Source: Energy Information Administration based on data from various published studies. As of May 9, 2011.


U.S. Production Trend Has Significant Implications

Source: EIA, BENTEK. *Estimates source: EIA and BENTEK. Data is representative of the rising production of natural gas and crude oil.CAGR refers to Compound Annual Growth Rate.

3

4

5

6

7

8

9

10

40

50

60

70

80

90

100

110

120

130

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

2013

e

2017

e

Crude O

il (MM

Bpd)

Nat

ural

Gas

(Bcf

/d)

Natural Gas Crude Oil Forecast

CAGR: 7.3%

CAGR: 2.9%

* *


North American Crude Oil Production Growth to Have Global Impact

Source: EIA, BENTEK, CAPP.

9.8 9.58.6

4.1 4.1

14.4

0

2

4

6

8

10

12

14

16

Russia Saudi Arabia North America China Iran North America

Mill

ions

of b

arre

ls/d

ay (M

mb/

d)

CA

N CA

N

US

US

2011 2020(estimated)


Crude Pricing Differentials Reflect Logistical Bottlenecks

30-day average basis differentials to West Texas Intermediate (WTI) as of 6/30/13. WCS refers to Western Canadian Select. LLS refers to Light Louisiana SweetSource: Bloomberg

LLS+$7

WTI$97

Bakken($3)

WCS($14)

Brent+$6

PADD 3

PADD 5

PADD 4

PADD 2

PADD 1

Midland($0.15)


Production Trend Creating Demand for Infrastructure

Source: Barclays, Wells Fargo, company filings.* Estimates Source: Barclays Research. Capital spending is representative of the total amount of money that is

spent by MLPs.

$3.8 $4.9$7.5

$2.9$6.9 $8.1

$17.5

$30.4

$19.7$16.4

$30.3

$37.4

$53.4

$65.6

$0

$10

$20

$30

$40

$50

$60

$70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 NextThreeYears*

Cap

ital S

pend

ing

($ b

illio

ns)

Organic Acquisitions


Investment Story:Plains All American Pipeline, L.P. (PAA) Company OverviewPlains All American Pipeline, L.P., is engaged in the transportation, storage, terminalling, and marketing of crude oil, refined products, and natural gas liquids (NGLs). The partnership’s assets include more than 18,000 miles of active crude oil, refined products, and NGL pipelines and gathering systems, approximately 120 million barrels of liquid storage capacity, 10 fractionation plants and nine processing plants.Investment Thesis Strong fundamental performance over a variety of commodity price and supply/demand cycles Diverse geographic footprint across the U.S. and Canada Well-positioned to take advantage of changing crude basis differentials as domestic production growth continues Portfolio of approved projects exceeds $5 billion

-60%

-40%

-20%

0%

20%

40%

60%

80%

PAA Total Return (403%) S&P500 Total Return (62%)

-4.0%-3.0%-2.0%-1.0%0.0%1.0%2.0%3.0%4.0%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

U.S

. Annual G

DP

Grow

thPA

A A

nnua

l Dis

tribu

tion

PAA Annual Distribution (CAGR: 7.7%)U.S. GDP Growth (CAGR: 1.4%)

* *

Sources: Plains All American Pipeline, L.P. (NYSE: PAA), U.S. Bureau of Economic Analysis, FactSet.*Total Return includes reinvested distributions. Returns shown are cumulative. The index is unmanaged and cannot be purchased directly by investors. As of June 30, 2013, Plains All American Pipeline L.P. represented 7.59%, 1.59%, 0.00%, 7.74% and 0.00% of Oppenheimer SteelPath MLP Alpha, Income, Select 40, Alpha Plus and MLP and Infrastructure Debt Fund. The example above is shown for illustrative purposes only to demonstrate our Investment process. It should not be assumed that an investment in any actual security was profitable or will be profitable in the future. There can be no assurance that any investment process or strategy will achieve its investment objectives. This is an example of a holding and does not depict the performance of the Oppenheimer SteelPath MLP Funds. Past performance does not guarantee future results.


Investment Story:Sunoco Logistics Partners, L.P. (SXL)Company OverviewSunoco Logistics Partners, L.P., owns and operates a diverse mix of crude oil, refined products, and natural gas liquids (NGLs) pipelines, and terminalling and storage facilities, as well as crude oil acquisition and marketing assets. The partnership’s assets include 4,900 miles of crude oil trunk pipeline, 500 miles of crude oil gathering lines, 200 crude oil transport trucks, 120 crude oil truck unloading facilities, 42 refined products terminals, 2,500 miles of refined product pipelines, and two natural gas liquids projects.Investment Thesis Strong fundamental performance over a variety of commodity price and supply/demand cycles Diverse geographical foot print across the U.S. Well-connected to key crude oil markets Above average distribution coverage with strong balance sheet

-60%

-40%

-20%

0%

20%

40%

60%

80%

SXL Total Return (672%) S&P 500 Total Return (62%)

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

U.S

. Annual G

DP

Grow

thSX

L A

nnua

l Dis

tribu

tion

SXL Annual Distribution (CAGR 12.4%)U.S. GDP Growth (CAGR 1.4%) * *

Sources: Sunoco Logistics Partners, L.P. (NYSE: SXL), U.S. Bureau of Economic Analysis, FactSet.*Total Return includes reinvested distributions. Returns shown are cumulative. The index is unmanaged and cannot be purchased directly by investors. As of June 30, 2013, Sunoco Logistics Partners represented 5.52%, 0.00%, 3.25%, 5.77% and 5.35% of Oppenheimer SteelPath MLP Alpha, Income, Select 40, Alpha Plus and MLP and Infrastructure Debt Fund. The example above is shown for illustrative purposes only to demonstrate our Investment process. It should not be assumed that an investment in any actual security was profitable or will be profitable in the future. There can be no assurance that any investment process or strategy will achieve its investment objectives. This is an example of a holding and does not depict the performance of the Oppenheimer SteelPath MLP Funds. Past performance does not guarantee future results.


Yield Comparison

Source: FactSet. Data as of June 30, 2013 and is calculated using the most recent annualized distribution. “MLPs” represent an equal-weighted average of the energy MLP space. The AMZ Index represents a float-adjusted, capitalization-weighted index of the 50 largest energy MLPs. Utilities are represented by the Dow Jones Utilities Index. BBB Bonds (BBB) are represented by the U.S. Corporate Bond BBB yield. Real Estate Investment Trusts (REITs) are represented by the FTSE NAREIT Equity REIT Index. Consumer Staples are represented by the Consumer Staples Select Sector Spyder Funds Index. Industrials are represented by the Industrial Select Sector Spyder Funds Index. Healthcare is represented by the Healthcare Select Sector Spyder Funds Index. Financials are represented by the Financial Select Sector Spyder Funds Index. Energy is represented by the Energy Select Sector Spyder Funds Index.10-Year Treasuries are represented by the U.S. Treasury Bond 10-year yield. Past performance does not guarantee future results.

6.51%

5.70%

4.03% 3.94% 3.77%

2.77%2.49%

2.15%1.83% 1.73% 1.59%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

MLPs AMZ BBB Utilities REITs ConsumerStaples

10 YrTreasury

Industrials Energy Healthcare Financials


Price/Distributable Cash Flow

Source: FactSet, OFI SteelPath estimates, as of 6/30/13. Past performance does not guarantee future results.Price/Distributable Cash Flow is the price paid today for the next 12 months Distributable Cash Flow .This is the cash flow available to pay distributions.

5x

7x

9x

11x

13x

15x

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Price/DCF: 12.8x

Average (ex 08-09): 11.8x

Average: 11.5x

`


AMZ/BBB Yield Spread

Source: Alerian, FactSet, as of 6/30/13. Past performance does not guarantee future results.This slide compares the AMZ/BBB yield spreads to determine relative valuation.

-2%

-1%

0%

1%

2%

3%

4%

5%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

AMZ Yield Spread to BBB: 1.69%

Avg (excld 08-09): 1.34%

Avg: 1.36%

`


Fundamental Risks

Disruption of supply: A long-term supply disruption caused by geopolitical events abroad which could negatively impact crude oil imports, thereby hampering shipping, storage and processing volumes.

Legislative: The threat of a tax law change removing the “pass-through” nature of MLPs.

Regulatory: Laws enacted which would ban the use of hydraulic fracturing, which has been the major technique used to extract large volumes of crude oil, natural gas and natural gas liquids domestically. A change in methodologies related to FERC tariff adjustments.

Capital Markets: The inability of MLPs to access capital markets to raise assets through the issuance of equity and debt securities.

Market Risks

Headline: MLPs occasionally trade down with other energy related securities given investor perceptions that MLPs will be fundamentally affected by changes in underlying commodity weakness.

Appetite for Risk Assets: When market sentiment is risk averse, equity security allocations (including MLPs) tend to be reduced.

Interest Rate: A rise in interest rates could make other income producing securities attractive and cause investors to favor other yield oriented instruments. Secondarily, a sudden spike in interest rates could cause investors to flee, fearing pricing pressure on yielding securities.

Risks to MLPs


How to Access MLPs

Sources: OFI SteelPath;1. UBTI: Unrelated Business Taxable Income. 2. Each year, an investor holding MLP Units must take into account the investor's share of the MLP's income, which will predominantly be treated as ordinary income. Any such

income inclusions will increase the investor's basis in the MLP Units. Distributions by the MLP will not be subject to tax except to the extent they exceed the investor's basis in the MLP Units, in which case they will generally be treated as capital gain. Direct ownership of MLP Units would not involve leverage, active management or additional fees with respect to those units, but the MLP itself might incur leverage and management and other fees. This material is provided for general educational purposes only, and is not intended to provide legal, tax or investment advice or to avoid legal penalties that may be imposed under U.S. federal tax laws. Investors should contact their own legal or tax advisors to learn more about the rules that may affect specific situations or structures.

3. The chart assumes these funds will be treated as C-Corporations for tax purposes. Dividends paid to certain shareholdermay be taxable at preferential rates as qualified dividend income.

VehicleTax

ReportingDistributions to

Holders Taxed As LeverageActive

Management UBTI1

MLP Units2 K-1s Distributions not Taxable/ K-1 Items Taxable Income N/A No Yes

SMA K-1s Distributions not Taxable/ K-1 Items Taxable Income Varies Yes Yes

Closed End Mutual Fund3 1099 Return of Capital/Dividends Yes Yes No

Exchange Traded Notes 1099 Ordinary Income Varies No No

Open End Mutual Fund3 1099 Return of Capital/Dividends Varies Yes No

Exchange Traded Fund3 1099 Return of Capital/Dividends Varies Varies No


Why MLPs

Compelling historical yields and distribution growth potential*

Poised for continued robust growth capitalizing on more than $250 billion of infrastructure needed to meet growing domestic supply of resources

Why Midstream MLPs

Fee-based business model offers attractive risk/return characteristics with less exposure to broader economy and commodity price volatility

Opportunistic investment in the infrastructure required to support the U.S. energy renaissance

Why OFI SteelPath

Established and experience MLP manager with over 50 years** of combined experience in the MLP asset class

Proprietary, rigorous and differentiated investment process

* Past performance does not guarantee future results. Based on the historical performance of the companies in the MLP sector.

** As of December 31, 2012. Includes years of experience with SteelPath prior to the acquisition by OppenheimerFunds, Inc. on December 3, 2012.

MLP Summary


On December 3, 2012, OppenheimerFunds, Inc. acquired the assets of SteelPath Capital Management, LLC and SteelPath Fund Advisors, LLC. As of that date, OppenheimerFunds Distributor, Inc. became the general distributor and principal underwriter for each series of The SteelPath MLP Funds Trust.Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Each Fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. Additional management fees and other expenses are associated with investing in MLP funds. The Oppenheimer SteelPath MLP Funds are subject to certain MLP tax risks. Except for the Oppenheimer SteelPath MLP and Infrastructure Debt Fund, risks associated with accounting for deferred tax liability could materially impact each Funds’ net asset value. An investment in an Oppenheimer SteelPath MLP Fund does not offer the same tax benefits of a direct investment in an MLP. Except for the Oppenheimer SteelPath MLP and Infrastructure Debt Fund, all Oppenheimer SteelPath MLP Funds are organized as Subchapter “C” Corporations which means that it will pay federal, state and local income taxes at a corporate rate based on its taxable income. The potential benefit of investing in MLPs generally is their treatment as partnerships for federal income tax purposes. Since the Oppenheimer SteelPath MLP Funds, except for the Oppenheimer SteelPath MLP Infrastructure Debt Fund, are corporations, they will be taxed at the fund level which in turn will reduce the Funds’ net asset value and the amount of cash available for distribution. To the extent that a Fund obtains leverage through borrowings, there will be the potential for greater gains and the risk of magnified losses. Investing in debt securities involves additional risks including interest rate risk, credit risk, duration risk, and duplication of advisory fees and other expenses. High yield securities involve more risks than investment grade securities and tend to be more sensitive to economic conditions. Private equity investments may be subject to greater risks than investments in publicly traded companies due to limited public information and lack of regulatory oversight.The Funds’ portfolio strategies and holdings, are dollar weighted based on assets and are subject to change. Holdings mentioned in this report do not constitute a recommendation by the Funds or OFI SteelPath, Inc.Total returns do not show the effects of income taxes on an individual’s investment. Taxes may reduce an investor’s actual investment returns on income or gains paid by the Fund or any gains realized if the investor sells his/her shares.Master Limited Partnerships (MLPs) are represented by the equal-weighted average of the energy MLP universe. The Alerian MLP Index (AMZ) is a composite of the 50 most prominent energy Master Limited Partnerships that provides investors with an unbiased, comprehensive benchmark for this emerging asset class.Real Estate Investment Trusts (REITs) are represented by the FTSE NAREIT Equity REIT Index and are securities that sell like a stock on the major exchanges and invest directly in real estate. Risks of investing in REITs include, but are not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. Utilities are represented by the Dow Jones Utilities Index. The prices of the securities of utilities companies may fluctuate widely due to government regulation; the effect of interest rates on capital financing; competitive pressures due to deregulation in the utilities industry; supply and demand for services; increased sensitivity to the cost of natural resources required for energy production; and environmental factors such as conservation of natural resources or pollution control. Fixed Income is represented by Barclays Aggregate Bond Index. Investing in debt securities involves risks including interest rate risk, credit risk and duration risk.The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe.The Dow Jones is a price-weighted measure of 30 U.S. blue-chip companies. The Dow covers all industries with the exception of transportation and utilities, which are covered by the Dow Jones Transportation Average and Dow Jones Utility Average.The NASDAQ is a market-capitalization weighted index of the more than 3,000 common equities listed on its stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks. The S&P 500 Index is an unmanaged capitalization-weighted index (weighted by the market value of the companies) of 500 stocks listed on various exchanges.The Barclays Capital Investment Grade Natural Gas Pipelines Index is the Pipelines component of the Barclays Capital Investment Grade Natural Gas Index comprised of natural gas pipeline entities. The debt issues in the Index are publicly issued and investment grade with at least $250 million outstanding and at least one year to final maturity regardless of call features.Index performance is shown for illustrative purposes and does not predict or depict performance of the funds. Indices are unmanaged and cannot be purchased directly by investors.

Disclosure Statements


These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of June 30, 2013, and are subject to change based on subsequent developments.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

For Institutional Use Only. This material has been prepared by OppenheimerFunds Distributor, Inc. for institutional investors only. It has not been filed with FINRA, may not be reproduced and may not be shown to, quoted to or used with retail investors.

It is intended to provide an overview of the Funds’ performance for the stated report period and should be viewed in its entirety. Individual pages should not be reviewed or distributed in isolation.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.Past performance does not guarantee future results.Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008©2013OppenheimerFunds Distributor, Inc. All rights reserved.

Disclosure Statements

gaining access to the u.s. energy …...investment story: sunoco logistics partners, l.p. (sxl)...

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