Even though BreitBurn will be spending almost $0.31/shr. distribution to its Class A preferred share holders on July 15, I think it will still increase its unit distribution in July. This will probably be $0.02 annual to a total of $2.01/unit annual distribution.
Also, although they did not make an acquisition so far this year, I think they will still meet or exceed their target of $600 million in acquisitions this year. It is a credit to Hal and the others that they have not gotten into a bidding war for properties as oil prices have risen, but instead are holding to the acquisition principles that have paid off so well for them in the past.
Thanks, Money. It’s nice to own a stock that generates consist increasing returns and has a good management team running the company. BTW, my OBV (On-Balance Volume) analysis indicates that they have not sold the ATM stock yet. Maybe they don’t want to upset the rise in stock price they are finally seeing. Appreciate all your informative posts.
Breitburn Energy Partners announced a cash distribution of 16.75c per common unit for the first month attributable to Q2, payable on July 16, to record holders of its common units at the close of business on July 11. The monthly distribution represents an increase from the last distribution of 16.58c per common unit and is $2.01 per common unit on an annualized basis.
They really have enough to do getting last year's acquisitions in order, the metrics never hit those high marks they forecast, maybe they should see to that first before piling on.
To unit holders, growth isn't that important year to year, growth for growth's sake is a management thing, every business guy wants to conquer and pillage. VNR was a quiet low-growth MLP concentrating on small bolt-on properties, and putting up coverage ratios as high as 1.4. But that wasn't good enough for management, they went on a buying binge and coverage is now average at best. This isn't VNR, but the point is, these are supposed to be yield vehicles, and to existing unit holders little purchases just designed to replace reserves and keep the distribution growing with inflation would be ideal. But management can't be satisfied with that. Why do we need another $600M this year?