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.

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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