BreitBurn Energy Partners L.P. (NASDAQ:BBEP) – The Stock on High Peek


Dallas, Texas 09/11/2013 (Financialstrend) – BreitBurn Energy Partners L.P. (NASDAQ:BBEP) is an independent oil and gas partnership. With mature assets, technical expertise and a proven track record, the company is engaged in the acquisition, exploitation and development of oil and gas properties for the purpose of producing cash flow to make distributions to its shareholders in the United States. The company’s assets primarily consists natural gas, oil, and midstream assets located in the Los Angeles Basis in California, the in southwestern Wyoming, the Michigan, Indiana, Kentucky, central Wyoming, eastern Wyoming, Texas, California; and fields in Florida’s Sunniland Trend.

BreitBurn Energy Partners L.P. (NASDAQ:BBEP) is on a very high peek and it is mature and long lived oil and gas reserves and recently, the stock has grown via acquisitions and organic growth. The company’s distribution yield of 11% is one of the most attractive features for the company. In its last quarter result, the company reported increase in EBITDA by approximately 30% YoY. It is expected that the company will post more than 50% sales gain in the current financial year and further analyst are also projecting an additional 30% gain in the FY14. As mentioned, because of its new acquisitions company’s revenue is growing rapidly, the average estimated earnings for the FY13 and FY14 have risen to the upside over the past quarter.

In summary, Organic growth helped the company to record better than expected results for Q213.  Further the Postle deal also brings technology gain for the company. Through tertiary development currently, much of the oil is being produced by simply pumping carbon dioxide gas into wells to get more oil to come out in the Postle acreage. In the future, the company may be able to apply this technology to get double or triple the EURs (expected ultimate recovery). The management is thinking ahead for it as it is likely to be a big boon for the company in future.

The company’s current stock price is $14.57 and the target price for the median analyst who covers this stock is $21 per share which is much higher than its current price.