BBEP

[dan_s]

BreitBurn Energy Partners, LP (BBEP): An updated profile and forecast model have been posted under the MLP tab.

BBEP make distributions monthly at a 10% annual rate. It has already committed to increase distributions as part of the merger with QRE, which is on-track to close by year-end.

[cmm3rd]

What is your view of the offering announced yesterday and priced today at $18.64, with proceeds to reduce debt? PPS still under the offering price, yield now over 11%. Is the market concerned about commodity prices, or is the pps weakness transitory?

[dan_s]

One thing to remember about MLPs is they are going to issue new units to fund acquisitions. They all do it and they should. We do not want to own any upstream company that is funding growth with debt.

BBEP (like all upstream MLPs) has a very high percentage of their production hedged, so short-term dips in oil and gas prices have very little impact on their cash flows.

I like BBEP a lot. Dividends are rock solid and going up right after the merger closes.