This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
BreitBurn Energy Partners L.P. (the “Partnership”) (NASDAQ:BBEP) announced today that it has completed the acquisition of oil properties located in Park County in the Big Horn Basin of Wyoming for approximately $93 million from Legacy Energy, Inc., a wholly-owned subsidiary of NiMin Energy Corp, subject to post-closing adjustments. The acquisition was originally announced on April 25, 2012.
Hal Washburn, CEO, said, “We are pleased to announce the completion of this bolt-on acquisition in the Big Horn Basin of Wyoming. This transaction demonstrates the continued success of our growth through acquisitions strategy. In addition, we have two other previously announced acquisitions in the Permian Basin expected to close in early July, which when completed, will bring our 2012 year to date total acquisitions to approximately $300 million. These assets are excellent additions to our portfolio and we remain well positioned to continue to be an active acquirer for the remainder of the year.”
Related Swaption Contracts Further Extend the Partnership’s Attractive Hedge Portfolio
In conjunction with the announcement of this acquisition on April 25, 2012, the Partnership entered into certain swaption contracts providing the Partnership with the option to hedge crude oil volumes listed below at the indicated NYMEX WTI prices. Based on current market conditions, Management expects to exercise the Partnership’s options to enter into these contracts on July 31, 2012, the options’ expiry and exercise date. These contracts, if executed, will extend the Partnership’s hedge portfolio into 2017 at attractive prices.
WTI Contract Price*
Aug – Dec 2012
Jan – Dec 2013
Jan – Dec 2014
Jan – Dec 2015
Jan – Dec 2016
Jan – Jun 2017
*Represents at-the-money swap prices as of the date the swaption contracts were entered into.