Unfortunately, the deal that put BreitBurn over the top -- its merger with QR Energy -- has also been its downfall, as it came at what in hindsight was the top of the oil market. That acquisition really tapped out the company's credit line leaving it dangerously short of liquidity after the oil market collapsed. This necessitated not one but two 50% distribution cuts along with a billion-dollar lifeline from a private equity firm. That quick fall from the top has many investors wondering what else could possibly go wrong.
The real concern is its potential to meaningfully weaken by 2017 due to the roll off of its oil hedges should commodity prices remain weak. This could lead to a liquidity crisis and force the company to sell assets at fire sale prices or worse yet leave the company with no choice but to restructure its debt through bankruptcy.
What More Could Possibly Go Wrong at BreitBurn?
No U have a De-Listing Notice comin' up real soon. Then Lawsuits Plastered all ova BLEEPs Headlines. Then Reverse Split where ya Really get Foked, aye Dopey? lol
Great timing for De-Listing Notice. As if yer Portfolios ain't RED enough, yer buyin' just b4 pps going down to 10-Cents n' gets 5-times as RED, aye Foolz? lol
Wait n' see what happens on the De-Listing Notice and Lawsuits Plastered all ova BLEEP Headlines.
U may be able to scoop these up for 10-Cents apiece, Chicken-Feed, aye Bozz? lol
Gonna unload This at depressed Prices, Penniez on the Dollar, Peanuts, Chump Change, set out on the shelf at 'Fire Sale' prices for the Fat Cats, Conglomerates, and Big Kahunas, aye Bozz? lol
Phillips 66 (NYSE: PSX) had a big-time buyer on the desk once again this past week. Warren Buffett’s Berkshire Hathaway was busy scooping up a massive 902,442 shares of this energy manufacturing and logistics company at prices between $75.41 and $77.50 per share. The total for the trade came to $69 million. The investing legend bought an additional 1,741,210 shares at prices between $76.17 and $77.18. The total for this buy was a staggering $132 million. The stock closed on Friday at $78.47. Not Peanuts like BLEEP. lol
Summit Midstream Partners L.P. (NYSE: SMLP) is another energy company that saw an insider buying shares, and the company hit our screens last week as well. A director picked up 296,142 shares at prices that ranged from $16.87 to $17.56. The total for the trade came to a sizable $5.1 million. Again, Not Peanuts like Bleep who who Sold More than they Bot. lol
Crestwood Equity Partners L.P. (NYSE: CEQP) had insider buying for the fourth time in past month. A director purchased a huge 366,770 shares at prices between $16.56 and $16.95 apiece. The total for the buy was a solid $6.2 million. Not Peanuts like Bleep. lol
Hedges cover 72% of production but that means that 28% must be sold at increasing Losses which will tend to eat into Cash Reserves. Oopz!