BreitBurn Energy Partners LP Stock Upgraded (BBEP)

NEW YORK ( TheStreet) -- BreitBurn Energy Partners (Nasdaq: BBEP) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • BBEP's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 565.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 47.3% when compared to the same quarter one year prior, rising from -$94.75 million to -$49.97 million.
  • Net operating cash flow has increased to $71.30 million or 31.06% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.47%.
  • BREITBURN ENERGY PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BREITBURN ENERGY PARTNERS LP increased its bottom line by earning $1.61 versus $0.60 in the prior year. For the next year, the market is expecting a contraction of 91.6% in earnings ($0.14 versus $1.61).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BREITBURN ENERGY PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

BreitBurn Energy Partners L.P. engages in the acquisition, exploitation, and development of oil and gas properties in the United States. The company has a P/E ratio of 6.4, below the average energy industry P/E ratio of 6.9 and below the S&P 500 P/E ratio of 17.7. BreitBurn Energy has a market cap of $1.21 billion and is part of the basic materials sector and energy industry. Shares are down 7% year to date as of the close of trading on Wednesday.

You can view the full BreitBurn Energy Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
null

If you liked this article you might like

Vanguard Natural Resources' Credit Review Breathes New Life Into The MLP

Vanguard Natural Resources' Credit Review Breathes New Life Into The MLP

Insider Trading Alert - FIX, ATRO And BBEP Traded By Insiders

Oil Companies Can Be Good, Bad or Ugly -- Even as Oil Recovers

Oil May Hit $50 But There Are Still Good, Bad and Ugly Plays

Oil May Hit $50 But There Are Still Good, Bad and Ugly Plays

5 Stocks Under $10 to Trade for Breakouts