MLPs offer opportunity after sector downturn, UBS says

|By:, SA News Editor

UBS sees opportunity ahead for energy MLPs, believing some of the "issues" that have clouded prospects - including negative scrutiny about practices at Linn Energy (LINE) and LinnCo (LNCO) which cast a cloud over the upstream MLP group - will fade.

Many risk factors are priced in at current levels, and there are some valuation opportunities, the firm says.

Mid-Con Energy Partners (MCEP) wins UBS accolades on its higher distribution potential and limited exposure to downside scenarios; other top picks are BreitBurn Energy Partners (BBEP) and LRR Energy (LRE).

UBS actually awards LINE a Buy rating, along with QR Energy (QRE); it's neutral on Legacy Reserves (LGCY), LNCO and Vanguard Natural Resources (VNR).