Just for kicks on a rainy 4rth of July, I did a little test on upstream MLPs just to see to what degree BBEP has been subject to attack greater than. the genre in general, premise being BBEP, probably unfairly, is being associated with LINE's investigation moreso than the industry as a whole. I do not follow upstream MLPs as a group, but I know it's a small group and I found 13 that were considered upstreams.. I excluded 2, Pioneer Southwest Energy Partners because it's being taken over, and Constellation Energy Partners because it's so small. I ranked the rest based on volume as a percentage of average volume and then did percentage drop calc as well over the past 2 days (both based ONLY on what Yahoo says).... Here's what I found: 1. Linn Energy (LINE) 7.44x average volume and -31.5%, 2. BBEP 7.14x and -16.0%, 3. Linco (LNCO) 5.18x and -27.3%, 4. Atlas Resource Partners (ARP) 4.56x and -14.3%, 5. QR Energy (QRE) 3.77x and -9.8%, 6. Vanguard Natural Resource (VNR) 2.46x and -6.5%, 7. Legacy Reserves (LGCY 1.53x and -6.4%, 8. Atlas Energy (ATLS) 1.47x and -8.7%, 9. Memorial Production (MEMP) 1.05x and -3.6%, 10. EV Energy Partners .85x and -5.24%, Mid-Con Energy (MCEP) .63x and -2.8%. In looking over the stats for the 2 days, it was obvious that an assault on the genre gained strength yesterday as volume increased significantly on all issues.
I don't know if any of this is relevant to anything whatsoever, especially since I know nothing about the other MLPs on the list, but to me, it appears obvious that BBEP has been, be it rightly or wrongly, punished for the investigation centered on LINE and LNCO moreso than any other upstream with only Atlas Resources (ARP) even coming close based on volume or negative performance. Personally, I'm thinking the BBEP association is overdone but having said that, the market seemed to just begin to punish the rest of the industry yesterday while BBEP and LINE got seriously whacked for 2, so who knows what's to happen?