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BreitBurn Energy Partners L.P. Reports Second Quarter Results, Announces Substantial Increase In 2012 Capital Program And Updates Second Half 2012 Guidance

Stocks in this article: BBEP

BreitBurn Energy Partners L.P. (the “Partnership”) (NASDAQ:BBEP) today announced financial and operating results for its second quarter of 2012, a substantial increase in its 2012 capital program, and updated second half 2012 guidance.

Key Highlights

  • The Partnership had strong operating and financial results with net production increasing 18%, and Adjusted EBITDA increasing 28%, from the second quarter of 2011.
  • On July 31, 2012, the Partnership announced an increased cash distribution for the second quarter of 2012 of $0.4600 per common unit, equal to an annualized rate of $1.84 per common unit, to be paid on August 14, 2012 to the record holders of common units at the close of business on August 10, 2012. This represents the Partnership’s ninth consecutive quarterly distribution increase and a 9% increase over the cash distribution for the second quarter of 2011.
  • On July 2, 2012, the Partnership completed two separate acquisitions of principally oil properties located in the Permian Basin in Texas from Element Petroleum LP and CrownRock LP for approximately $150 million and $70 million, respectively, subject to customary post-closing adjustments.
  • On June 28, 2012, the Partnership completed the acquisition of oil properties located in Park County in the Big Horn Basin of Wyoming from NiMin Energy Corp. for approximately $93 million, subject to customary post-closing adjustments.
  • The Partnership is substantially increasing its 2012 capital program for the second time this year. In April, the Partnership announced a $19 million increase to its original 2012 capital program of approximately $68 million. Today the Partnership is announcing an additional increase of $50 million. This latest increase expands the Partnership’s total 2012 capital program to approximately $137 million and will be allocated principally to attractive oil development opportunities on newly acquired assets as well as the Partnership’s legacy assets.
  • The Partnership updated its guidance for the second half of 2012, reflecting year-to-date acquisitions and the positive impacts of its increased capital program.

Management Commentary

Hal Washburn, CEO, said: “The Partnership delivered a strong second quarter as we continued to execute on our growth through acquisitions strategy. We completed three very attractive acquisitions of primarily oil properties which expanded our operations to seven states and established our presence in the Permian Basin. Additionally, we are increasing our capital program for the second time this year by $50 million to develop our newly acquired assets and to pursue a series of attractive oil projects identified in our legacy assets as well. To reflect our increased capital program and recent acquisitions, we are increasing our full year production target to between approximately 8.3 MMBoe and 8.6 MMBoe and we are increasing our full year Adjusted EBITDA target to between approximately $280 million and $290 million. These increases demonstrate our focus on continually improving our operating performance and the ongoing success of our growth through acquisitions strategy.”

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