I was just about to write something similar.... We're right up where I actually have a profit on my position (ignoring how nicely the dividends have treated me) and everytime we reach a level like this, it's Secondary Time!!! And this time there's added motivation since the Whiting deal still needs permanent funding..... When there's a secondary, I pounce and add more, yet still I seem never to quite make it back to average cost for very long... Still, I'm happy with the position....
I bought back in, but would I at $18.92? Not if there weren't other buys out there, because BBEP since it recovered to normalcy (say, around the end of 2010) has been dead money in this range. You expect that from an upstream, stable is fine if you're just holding for cash flow, but you'd like to see some increase in the unit price, at least keeping up with the distribution.
Eventually I think you'll see that here, this needs to play catch up on yield. It should trade around 8.5%, which is $22.50, and maybe 8% if it shows that it can perform consistently, which would be $24. But that's not happening until the big offering is digested and they prove they can meet coverage. If I had to guess, I think you'll see them pull the trigger just short of $20, with the offering priced in the mid $19's. So if you want to see a material profit from here, start thinking the second half of 2014, barring disasters.
they may do a stock offering but I am leaning towards their doing senior debt and perpetual preferred and sitting up an ATM for selling stock so you won't see that large stock discount. It would also be nice if they went to monthly distributions.