your an idiot...... 74% hedged and average cost of 28 dollar oil....... Are you that silly to think oil will stay doen to their cost..... They are hedged 3 years out and one of the best in the industry if you pull your head out of your butz. ........... Yes they acquired but hedged and are using credit wisely.
2015 The decline seen in the unit price of Breitburn has been brutal. However, for the brave investor, serious amounts of value can be found.
AFTER the distribution cut. Based on its estimated $1.35 per unit of DCF, Breitburn is trading at an absurd 4.19x DCF multiple, by far one of the lowest metrics I have seen for an MLP.
• Breitburn Energy Partners Declares Common and Preferred Unit Distributions, Provides Preliminary Operating Information for 2014 and Full Year 2015 Guidance BreitBurn's oil hedging is now among best in industry. Breitburn actually has some strong hedges which should partially protect it from falling oil prices. As shown, hedges will cover 74% of the estimated 2015 production -- 75% for oil production and 71% of natural gas.
• The unit price has been cut in half. It has fallen more then its peers and unjustly priced right here. FURTHER+ their cost is cheap…. Most of BreitBurn's oil comes mostly from either the Permian, Postle Field in western Oklahoma, or from southern California. According to research I've done in previous articles, BreitBurn's total operating cost in the Permian is about $24 per barrel. Postle Field's operating costs come in at around $31.75 per barrel.
• Extensive hedging should keep the debt/EBITDA ratio in line through 2015 and 2016.
For an upstream MLP, BreitBurn is fairly well prepared for this decline in oil prices. The partnership's hedging strategy is now one of the most extensive in the industry, and debt should stay within target metrics next year even if oil prices remain low.
- A cash distribution per Common Unit of $0.0833 for the first month attributable to the fourth quarter of 2014, or $1.00 per unit on an annualized basis. This amount will be payable on January 16, 2015, to unitholders of record at the close of business on January 13, 2015, and represents a reduction from Breitburn's last monthly payment which was $0.1733 per Common Unit or $2.08 per unit on an annualized basis. Breitburn is perhaps the most undervalued name in the upstream MLP sector. The decline seen in the unit price of Breitburn has been brutal. However, for the brave investor, serious amounts of value can be found. I believe the market is seriously mispricing BreitBurn. Even if the distribution were lowered by 40%, it would still yield over 17%. This is by far one of the more attractive risk/reward income opportunities out there. Hedge Portfolio Update
Based on the midpoint of Breitburn's production guidance for 2015, approximately 75% of Breitburn's liquids production is hedged for 2015 at an average price of $93.51/bbl and approximately 71% of Breitburn's natural gas production is hedged for 2015 at an average price of $4.98/mmbtu. Based upon the same production assumption for 2016, approximately 64% of Breitburn's liquids production is hedged at an average price of $89.01/bbl and approximately 56% of Breitburn's natural gas production is hedged at an average price of $4.25/mmbtu.
• Breitburn's guidance for full year 2015 reflects the recent significant decline in crude oil prices and a total capital spending program consistent with estimated maintenance capital requirements. Key components of Breitburn's full year 2015 guidance are:
o Estimated production in the range of 19.5 million to 20.7 million Boe;
o Total estimated capital expenditures of approximately $200 million; and
o Estimated Adjusted EBITDA, a non-GAAP financial measure, between $650 million and $700 million.
Breitburn's guidance for 2015 is based upon the additional footnotes and cautionary statements set forth herein.
Breitburn's Guidance is based on flat $60 per barrel WTI crude oil, $65 per barrel Brent crude oil, and $3.50 per Mcf natural gas price levels for 2015. As shown, BreitBurn has around 71% of its anticipated 2015 oil and natural gas production hedged at well above market prices. This number drops to 60% for oil and 56% for natural gas in 2016. By 2017, BreitBurn's hedges only cover 36% of anticipated production. By 2018, BreitBurn has essentially no hedges in place
Stick it up your #$%$.... 74% hedged and their oil cost is 30 dollars for the rest. They are hedged for 3 years out and will do great. They are one of the best at hedging in the business and margins may only fall 15% at most. Cover idiots you are missing one heck of a chance for a triple.
Do some research and you will find they are hedged at a high oil price for over 18 months. SO NO !!! it cant go under for quite a while. We will know a lot more in 18 months and I bet oil will be back around at least 80 a barrel. That would mean we are protected and will have a very nice return
Sentiment: Strong Buy
#$%$,,,,, Karen just wanted 18% and ran? I saw the Feb calls and there is a lot of running room here. I am in for a year here. I want the triple and not the 5.25 call. This should roar right back today. 4x volume today....we ste almost back were she said buy.
Sentiment: Strong Buy
Canada down 20% of their rigs. The cycle is starting. The hedging secures the future of this stock to ride the storm. Its a matter of finding the bottom or getting close enough to turn the ship. I think we are very close and other will be hopping on. People will look 18 months out and see this could be a very good return.
((( pricier oil)))) ? They are stocking this cheap oil in any thing that floats , expands or does not leak. don't ya think it averages? From 70 to one dollar and you are bragging your waiting for 10 dollars to cover. Your' re about as bright as the Barrons dude that stated if 25% of the holders of oil stock sell at the same time they could drive oil to 20 or 30 dollars....... But if they all cover it will be back to 60 dollars. He said he figures the average is around 50 to 60. My bet is we are closer to the bottom then the top and in a year I will be smiling more then you finaly covering at 10 to 15 dollars.
You held your puts when the stock is up 400%........... That is not a wake up ( call ). Do YOU THINK at all ? EVEN if they do an offering the they will make the DEBT and the world will not stay down for ever. Its a cycle and it does repeat. They will not give oil away for ever. They will not produce under the price of making it for a great time. The big oil companies PPS stabilized and is not falling with the price of oil to give you a hint.
this cheap oil is a heaven sent for shippers. Its a must buy now as they want to contract the liquid gold low. It runs the rates up. Then you have the clumsy bear that say oil will be experiencing weakness an could trade down to 20 or 30 if 25% of the longs sell at the same time in a compulsive panic. DDAAAaaa it could sky rocket if they panic buy!!!! The chances of a panic buy because of 6 year lows are showing a bigger chance of happening.
5.50 FRO150220C00005500 Call 0.40 0.60 0.55 +0.55 358 Last one went at .55 cents....... For FEB that looks cheap ............................... we almost hit that today...... GO Karen
Karen is one smart fortune cookie. if you watch the show she is on target and plays with the big boys. I would put her up against any body in her stock aptitude and sense for the game.
I think you are an idiot. The stock is hedged for almost two years. Guaremyed high oil and dividend. Canada has shut down 20% of their wells. What makes you think oil will magically not follow history, past cycles? In no way will the Arabs keep pumping below 50 dollar oil
Why don't you think companies will shut down? Capitalism don't run by giving oil aesy and costing you each barrel you produce. Its levorage and manipulation looking down the gun. When they blink every one will shut down. This stock will triple
They are hedged and the divy secure. The leverage on the shorts position could blow up lkr flo. The went from a buck to 5 bucks in one month.
What's it going to be in one year,...... Are people that stupid or just manipulators,.... Strong buy as it is hedge twice that long