BreitBurn Energy Partners L.P. (BBEP), an upstream MLP that had an active last year in the acquisition market, is expected to use $900 million to make additional acquisitions this year, says Daniel Katzenberg, Executive Director and Senior Analyst for Oppenheimer & Co. Inc.
“They currently have about $900 million available to make acquisitions this year. We expect that they’ll most likely use the majority of that and make accretive acquisitions…I expect to get some acquisition announcements soon, and possibly of a large size, that will really improve their outlook,” Katzenberg said.
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BBEP also had a secondary offering a few weeks back, and the company is well-positioned from this point going forward with a lot of liquidity available for them to make attractive acquisitions alongside the rest of the upstream MLP group, Katzenberg says.
“It’s a great time for this group because the C-Corp E&Ps have really outspent cash flow for several years now and have been forced to dump conventional, more mature assets so that they can fund their shale programs, and these conventional assets are perfect for the upstream group, so I expect another very busy year on the upstream side as far as asset acquisitions,” Katzenberg said.
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