Wunderlich starts coverage of several lower-risk, high-yield MLPs

|By:, SA News Editor

Energy analysts at Wunderlich feel more confident about upstream MLPs as 2013 rolls over, and the firm initiates coverage on some of the more conservative high-yielding names.

Breitburn Energy (BBEP), Legacy Reserves (LGCY) and QR Energy (QRE) are initiated at Buy, believing they are trading at a discount to peers despite increasingly liquids-rich portfolios and a long and successful acquisition track records.

Memorial Production Partners (MEMP) and Vanguard Natural Resources (VNR) also are started at Buy despite more gas-oriented portfolios.

EV Energy (EVEP) is initiated with a Hold rating, citing limited upside until it divests its planned Utica acreage; Atlas Resources Partners (ARP) also starts at Hold pending clearer visibility toward its debt metrics and coverage ratio improvement.