What Are the Fastest-Growing Oil and Gas MLPs in America?

Upstream MLPs are a great way for long-term income investors to earn mouth-watering yields and strong capital gains, if chosen correctly. This slideshow ranks the 12 most popular upstream MLPs in America and helps investors determine where best to invest their hard-earned money.

Jul 20, 2014 at 6:11PM

As part of a series on upstream MLPs, I've been scouring the industry trying to help Investors compare these high-yielding ways of participating in America's historic oil and gas boom. Historically speaking, there have been five major metrics that contribute to long-term total returns: yield, distribution growth, distribution safety, valuation, and volatility. 

After investigating all the major upstream MLPs in the industry, I thought readers may enjoy a final article that ranks these income titans by the thing long-term investors treasure most: expected long-term total returns. 

A word of caution about this method of ranking MLPs: It's just a screening tool, a starting point for further research. These are 10-year projections I'm using, courtesy of S&P Capital IQ. They must be taken for what they are: educated guesses based on factors such as past performance, future commodity price trends, and acquisition potential. The ranking also doesn't take into account qualitative factors such as quality of management, changes in partnership strategy, or one-time events.  

However, I do feel this method can be illuminating for no other reason than it increases exposure to one of the best income-generating industries in America and sheds light on metrics many investors don't know about or pay attention to. It also brings to light lesser-known MLPs. Sometimes these can prove to be better investments than some better-known names such as Linn Energy (NASDAQ:LINE) and its non-MLP alternative Linn Co (NASDAQ:LNCO). One such example is Mid-Con Energy Partners (NASDAQ:MCEP), the second smallest MLP in the industry, but one that has many attributes making it worthy of consideration by income investors. 

Keeping its limitations in mind, let's examine the 12 most popular upstream MLPs in America and see which ones are expected to perform the best over the next decade.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Adam Galas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers