BREITBURN ENERGY PARTNERS, L.P. - COMMON UNITS REP (BBEP, Financial) filed Amended Annual Report for the period ended 2009-12-31.
Breitburn Energy Partners, L.p. - Common Units Rep has a market cap of $1.04 billion; its shares were traded at around $19.44 with a P/E ratio of 18.9 and P/S ratio of 5.1. The dividend yield of Breitburn Energy Partners, L.p. - Common Units Rep stocks is 7.9%.BBEP is in the portfolios of Seth Klarman of The Baupost Group, Jim Simons of Renaissance Technologies LLC.
On June 17, 2008, we purchased 14,404,962 Common Units from subsidiaries of Provident at $23.26 per unit, for a purchase price of approximately $335 million (the “Common Unit Purchase”). These units have been cancelled and are no longer outstanding.
On June 17, 2008, in connection with the Purchase, Contribution and Partnership Transactions, we and our wholly owned subsidiaries entered into the First Amendment to Amended and Restated Credit Agreement, Limited Waiver and Consent and First Amendment to Security Agreement (“Amendment No. 1 to the Credit Agreement”), with Wells Fargo Bank, National Association, as administrative agent. Amendment No. 1 to the Credit Agreement increased the borrowing base available under the Amended and Restated Credit Agreement dated November 1, 2007 from $750 million to $900 million. We used borrowings under Amendment No. 1 to the Credit Agreement to finance the Common Unit Purchase and the BreitBurn Management Purchase. As of December 31, 2009, our borrowing base was $732 million and our outstanding debt was $559 million.
With the improvement in commodity prices during 2009, we accelerated our capital spending in the second half of the year. In 2010, our crude oil and natural gas capital spending program is expected to be in the range of $72 million to $78 million, compared with approximately $29 million in 2009. We anticipate spending approximately 60 percent in California, Florida and Wyoming and approximately 40 percent in Michigan, Indiana and Kentucky. We expect to drill or redrill approximately 40 wells, with 59 percent of our total capital spending focused on drilling, 21 percent on mandatory projects and 20 percent on optimization projects. As a result of our accelerated capital spending, but without considering potential acquisitions, we would expect production to be approximately 6.3 MMBoe to 6.7 MMBoe in 2010.
Commodity hedging remains an important part of our strategy to reduce cash flow volatility. We use swaps, collars and options for managing risk relating to commodity prices. As of March 10, 2010, we have hedged (including physical hedges) approximately 80 percent of our 2010 expected production. In 2010, we have 47,275 MMBtu/d of natural gas and 6,580 Bbls/d of oil hedged at average prices of approximately $8.26 and $81.81, respectively. In 2011, we have 41,971 MMBtu/d of natural gas and 6,103 Bbls/d of oil hedged at average prices of approximately $7.92 and $77.54, respectively. In 2012, we have 38,257 MMBtu/d of natural gas and 5,016 Bbls/d of oil hedged at average prices of approximately $8.05 and $88.35, respectively. In 2013, we have 27,000 MMBtu/d of natural gas and 4,000 Bbls/d of oil hedged at average prices of approximately $6.92 and $76.82, respectively. In 2014, we have 748 Bbls/d of oil hedged at an average price of approximately $88.65.
In December 2008, the SEC issued SEC Release No. 33-8995, “Modernization of Oil and Gas Reporting” (“Release 33-8995”). This release revised the calculation of total estimated proved reserves. Prospectively beginning with this report, the revised calculation is based on unweighted average first-day-of-the-month pricing for the past 12 fiscal months rather than the end-of-the-year pricing, which was used for calculation of total estimated proved reserves for 2008. As of December 31, 2009, our total estimated proved reserves were 111.3 MMBoe, of which approximately 65 percent were natural gas and 35 percent were crude oil. As of December 31, 2008, our total estimated proved reserves were 103.6 MMBoe, of which approximately 75 percent were natural gas and 25 percent were crude oil. The increase in estimated proved reserves in 2009 due to economic factors was 9.8 MMBoe, which was primarily due to higher unweighted average first-day-of-the-month crude oil prices during 2009 ($61.18 per Bbl except Wyoming properties for which $51.29 per Bbl was used) compared to end-of -the-year pricing for 2008 ($44.60 per Bbl except Wyoming properties for which $20.12 was used), partially offset by lower unweighted average first-day-of-the-month natural gas prices during 2009 ($3.87 per Mcf) compared to end-of -the-year pricing for 2008 ($5.71 per Mcf). We also added 7.0 MMBoe from drilling, recompletions and workovers. The reserve additions were partially offset by 2009 production of 6.5 MMBoe, negative technical revisions of 1.5 MMBoe and the sale of the Lazy JL Field, which reduced reserves by 1.1 MMBoe.
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Breitburn Energy Partners, L.p. - Common Units Rep has a market cap of $1.04 billion; its shares were traded at around $19.44 with a P/E ratio of 18.9 and P/S ratio of 5.1. The dividend yield of Breitburn Energy Partners, L.p. - Common Units Rep stocks is 7.9%.BBEP is in the portfolios of Seth Klarman of The Baupost Group, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In 2006, we completed our initial public offering of 6,000,000 common units representing limited partner interests in us (“Common Units”) and completed the sale of an additional 900,000 Common Units to cover over-allotments in the initial public offering at $18.50 per unit, or $17.21 per unit after payment of the underwriting discount. In connection with our initial public offering, BreitBurn Energy Company L.P. (“BEC”), our Predecessor, contributed to us certain fields in the Los Angeles Basin in California, including its interests in the Santa Fe Springs, Rosecrans and Brea Olinda Fields, and the Wind River and Big Horn Basins in central Wyoming.On June 17, 2008, we purchased 14,404,962 Common Units from subsidiaries of Provident at $23.26 per unit, for a purchase price of approximately $335 million (the “Common Unit Purchase”). These units have been cancelled and are no longer outstanding.
On June 17, 2008, in connection with the Purchase, Contribution and Partnership Transactions, we and our wholly owned subsidiaries entered into the First Amendment to Amended and Restated Credit Agreement, Limited Waiver and Consent and First Amendment to Security Agreement (“Amendment No. 1 to the Credit Agreement”), with Wells Fargo Bank, National Association, as administrative agent. Amendment No. 1 to the Credit Agreement increased the borrowing base available under the Amended and Restated Credit Agreement dated November 1, 2007 from $750 million to $900 million. We used borrowings under Amendment No. 1 to the Credit Agreement to finance the Common Unit Purchase and the BreitBurn Management Purchase. As of December 31, 2009, our borrowing base was $732 million and our outstanding debt was $559 million.
With the improvement in commodity prices during 2009, we accelerated our capital spending in the second half of the year. In 2010, our crude oil and natural gas capital spending program is expected to be in the range of $72 million to $78 million, compared with approximately $29 million in 2009. We anticipate spending approximately 60 percent in California, Florida and Wyoming and approximately 40 percent in Michigan, Indiana and Kentucky. We expect to drill or redrill approximately 40 wells, with 59 percent of our total capital spending focused on drilling, 21 percent on mandatory projects and 20 percent on optimization projects. As a result of our accelerated capital spending, but without considering potential acquisitions, we would expect production to be approximately 6.3 MMBoe to 6.7 MMBoe in 2010.
Commodity hedging remains an important part of our strategy to reduce cash flow volatility. We use swaps, collars and options for managing risk relating to commodity prices. As of March 10, 2010, we have hedged (including physical hedges) approximately 80 percent of our 2010 expected production. In 2010, we have 47,275 MMBtu/d of natural gas and 6,580 Bbls/d of oil hedged at average prices of approximately $8.26 and $81.81, respectively. In 2011, we have 41,971 MMBtu/d of natural gas and 6,103 Bbls/d of oil hedged at average prices of approximately $7.92 and $77.54, respectively. In 2012, we have 38,257 MMBtu/d of natural gas and 5,016 Bbls/d of oil hedged at average prices of approximately $8.05 and $88.35, respectively. In 2013, we have 27,000 MMBtu/d of natural gas and 4,000 Bbls/d of oil hedged at average prices of approximately $6.92 and $76.82, respectively. In 2014, we have 748 Bbls/d of oil hedged at an average price of approximately $88.65.
In December 2008, the SEC issued SEC Release No. 33-8995, “Modernization of Oil and Gas Reporting” (“Release 33-8995”). This release revised the calculation of total estimated proved reserves. Prospectively beginning with this report, the revised calculation is based on unweighted average first-day-of-the-month pricing for the past 12 fiscal months rather than the end-of-the-year pricing, which was used for calculation of total estimated proved reserves for 2008. As of December 31, 2009, our total estimated proved reserves were 111.3 MMBoe, of which approximately 65 percent were natural gas and 35 percent were crude oil. As of December 31, 2008, our total estimated proved reserves were 103.6 MMBoe, of which approximately 75 percent were natural gas and 25 percent were crude oil. The increase in estimated proved reserves in 2009 due to economic factors was 9.8 MMBoe, which was primarily due to higher unweighted average first-day-of-the-month crude oil prices during 2009 ($61.18 per Bbl except Wyoming properties for which $51.29 per Bbl was used) compared to end-of -the-year pricing for 2008 ($44.60 per Bbl except Wyoming properties for which $20.12 was used), partially offset by lower unweighted average first-day-of-the-month natural gas prices during 2009 ($3.87 per Mcf) compared to end-of -the-year pricing for 2008 ($5.71 per Mcf). We also added 7.0 MMBoe from drilling, recompletions and workovers. The reserve additions were partially offset by 2009 production of 6.5 MMBoe, negative technical revisions of 1.5 MMBoe and the sale of the Lazy JL Field, which reduced reserves by 1.1 MMBoe.
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