Dallas, Texas 09/10/2013 (Financialstrend) – BreitBurn Energy Partners L.P. (NASDAQ:BBEP) has very mature and long-lived oil & gas reserves and has grown via acquisitions and organic growth. One of the most attractive features of this company for income-investors is it’s almost 11% distribution yield. The company’s revenues have been growing very rapidly, fueled by its new acquisitions. The expectation is that BBEP will post more than 50% sales-gain in the current financial year. Analysts are also projecting an additional 30% gain in the 2014 FY. In its reported last-quarter, the company’s EBITDA increased by close to 30% year-on-year. The average analyst estimate earnings for the 2013 and 2014 fiscal year have risen to the upside over the past quarter.
The median analyst price-target for analysts who cover this stock is $21/share which is much above the company’s current stock-price of $17.30, given the yield. Stifel Nicolaus have assigned a “buy” rating on the stock in August and the price-target is $21. In July, numerous insiders purchased more than $800K shares.
Monday’s trading
The BreitBurn Energy Partners L.P. (NASDAQ:BBEP) stock price rose by 1.155 in Monday’s trading. The opening price of the shares was $17.34 which rose to an intraday high of $17.64 and closed at $17.57. Approximately 0.554 million shares were traded on Monday and the average volume of shared traded over a 30 day period was 1.00 million. The company has a market cap of 1.75 billion.
The company
BBEP is an independent O&G company. It focuses on acquiring, exploiting and developing various oil & gas properties in the U.S. The company’s assets are primarily made up of natural gas and crude oil reserves situated largely in the Antrim Shale and numerous non-Antrim formations in the Michigan region such as Green River, Big Horn, and Evanston. Some other formations are located in Florida, Kentucky and Indiana.
