Texas' Permian Basin is quickly becoming one of the hottest oil plays in America. Its potential fueled 140% gains in the past year for investors in Diamondback Energy (NASDAQ:FANG), which is solely focused on the Basin.

FANG Chart

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Those same gains, however, have surprisingly eluded MLPs like BreitBurn Energy Partners (NASDAQ:BBEP) and Vanguard Natural Resources (NASDAQ:VNR). Because of that, both MLPs still have hidden upside to the basin.

One key difference here, and the reason why the value is hidden, is that neither BreitBurn Energy Partners nor Vanguard Natural Resources are likely to join Diamondback Energy in fully developing the horizontal sections of the basin. Instead, these two are likely to follow the lead of another MLP and monetize these high decline horizontal positions. This will not only enable both to realize some of the hidden value of these assets, but at the same time will add in some low-decline properties that help to grow distributions.

I created the following slideshow to help investors better understand the assets BreitBurn Energy Partners and Vanguard Natural Resources have hidden in the Permian Basin. The presentation details how these assets are turning a company like Diamondback Energy into a growth story, but why these aren't the best assets to be owned by MLPs like both BreitBurn Energy Partners and Vanguard Natural Resources.

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Matt DiLallo owns shares of Linn Energy, LLC. The Motley Fool recommends BreitBurn Energy Partners. 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.