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Breitburn Energy Partners LP Message Board

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  • chris96145 chris96145 Jan 5, 2010 8:47 PM Flag

    Why did BBEP pop today?

    Probably because the stock has a 19% dividend!

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    • Actually, it has no distribution. It was cut to zero back in April '09. Consensus seems to be reinstatement of a leaner distribution in 2Q.

      • 1 Reply to ironmen0805
      • Ironmen, Whatever that "consensus" seems to say about future distributions, I think that the fact from the article showing that BBEP is the most undervalued stock available has people like me taking substantial positions in the stock is the major driving force pushing the stock higher. Within the past few days some posters have shown their Due Diligence that shows the potential for over 20% returns in future year's distributions. Based on the stock performances of other oil and gas partnerships and oil trusts such as LINE and MVO, a anual distribution over $2 should just about double the present share price.
        Over the past year management has chosen not to renegociate lending terms which would have resulted in higher loan rates instead they paid down the debt rather than making distributions. The long-term results of this action should benefit us shareholders greatly over the longer-term. Some investors might be concerned about the tax consequences since earnings are taxed to the partners even if no distributions are made. So I expect that we will see some distribution or distributions in 2010.
        So I might be adding more to this investment as other investments are sold.

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