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Breitburn Energy Partners LP Message Board

  • johnkoeng johnkoeng Aug 25, 2008 5:21 AM Flag

    BBEP severely underpriced!

    See two-yr chart with high OVER $37/share, now under $17. Amazing how low institutional players can drop a stock to load up. Last quarter one million+ shares were bought by institutional holders out of a 12 million float. Not that i'm complaining... my starting buy-ins are all under $17!

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    • If Quicksilver isn't the entity doing the shorting, then someone is making a bet that could backfire.

    • cber11 Aug 26, 2008 2:33 PM Flag

      I hold a sizeable position in BBEP bought (unfortunately) at higher prices. But I have no concern for the future of this LP: long life assets in safe part of the world, hedges that protect the distributions, high rate of tax deferral, good coverage ratio. An excellent holding for an income investor who just wants to collect distributions, especially if he/she gets in now. I might just add.


    • "From the earnings cc transcript: ..."

      Thanks for that! That seems like a pretty tenuous basis to expect KWK is going to dump all their shares in October. Short interst was over 2million shares. The latest figures get disseminated today. It should be interesting....

    • So, the issue seems to be that they have issued a lot of stock to investors that really don't want to hold it for the long-term (including some of the hedge funds). They all want out eventually, but there does not seem to be enough long-term buyers stepping in.

      Given the cash-flow, it seems like a good fit for a private-equity firm or some other takeover. Any thoughts?

      I wish they would have waited a bit on the Provident buyback, because they could get a better price now. I guess they did some hedging, though, at higher prices as a result.

    • There is a pretty big overhang of shares held by Quicksilver - ~40% of all outstanding shares. Half of them become unrestricted in October.

      There is probably a lot of trading on that right now. Short interest is at an all time high -- 2 million shares on Aug 1.

    • Yeah, it is amazing that they have increased the dividend, made significant aquisitions, and energy prices have gone up, yet the stock is down 50%. I guess it was probably overpriced in the 30s, but seems like a fairly good long-term investment now (assuming we don't have some foolish change in govt. policies).

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