Atlas Resource Partners (fka ARPJQ)

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Atlas Resource Partners: the king of high-quality yield

Atlas Resource Partners has the distinction of being the highest-yielding quality MLP in the industry. It also sports one of the fastest growth rates with a stunning 614% increase in production in just the last two years, sending its distributions soaring by 45%, or 20.4% annually. What is the key to this stupendous success? Seven acquisitions worth $2 billion, but like Memorial Production Partners, Atlas Resource Partners is focusing on low-decline assets. In fact, Atlas Resource Partners' recent acquisitions have averaged an annual decline rate of just 8%.

Back in February Atlas Resource Partners purchased 70 billion cubic feet of natural gas in West Virginia and Virginia for $107 million. These assets not only produce 22 million cubic feet/day of gas, worth $36.1 million annually at today's prices, but have a decline rate of just 11%.

However, even that purchase pails in comparison to Atlas Resource's Rangely Field acquisition in which Atlas bought 47 million barrels of oil assets in Colorado with an nearly unheard of decline rate of just 3%-4% over the last 15 years. Atlas Resource plans on expanding CO2 injection into the field to preserve that decline rate and enjoy 2,900 barrels of oil/day over the 44 years production is expected to last. At today's oil prices this field will break even in just four years and produce $4.5 billion over its lifetime, paying for itself nearly 11 times over.

http://www.fool.com/investing/general/2014/07/07/why-these-2-oil-and-gas-mlps-need-to-be-on-your-ra.aspx