Linn Energy LLC (LINE), Vanguard Natural Resources, LLC (VNR): What Sets These MLPs Apart?

If you want a bit more growth
While both LINN Energy and Vanguard are known for slower growth and rising distributions, EV Energy Partners, L.P. (NASDAQ:EVEP) is more of a faster growth story. The company operates in less mature plays like the Barnett Shale and the Utica Shale. It also has a growing midstream business in the fast-growing Utica. Because of the focus on growth, its distribution has been relatively flat over the first few years.

With this growth comes a lot of upside. The company is currently marketing its 100,000 acres in the Utica which could be worth upwards of $10,000 an acre if it falls in line with other recent sales in the play. The company plans to reinvest those proceeds to buy assets that are a better fit for the company’s MLP profile. Because of its gas-heavy production and more growth-oriented portfolio, EV only pays a 5% distribution. While that’s not too shabby, it is a bit short of its peers. However, the upside is quite enticing.

My Foolish take
Of the three, Linn Energy LLC (NASDAQ:LINE) Energy and its sibling LinnCo are by far my favorite in the space. There’s just something to be said about owning the top dog in the space that it created and continues to dominate. The company continues to make the right moves and shows no signs of slowing down.

The article What Sets These MLPs Apart? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of LINN Energy, LLC and LinnCo, LLC. The Motley Fool recommends Range Resources.

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