BreitBurn Energy Partners L.P. Reports First Quarter 2007 Results and Reaffirms Previously Announced Guidance for 2007.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BBEP), an oil and gas master limited partnership ("MLP (Meridian Lossless Packing) The compression technique used in DVD-Audio that provides the highest audio quality. It delivers two channels at 192 kHz with 24-bit samples or six channels at 96 kHz. ") that was formed from the contribution of certain oil and gas properties from the Partnership's predecessor, BreitBurn Energy Company L.P., today announced results for its first quarter 2007. Summary of First Quarter 2007 Results Net loss for the quarter ended March 31, 2007 totaled $4.8 million, or 21 cents per diluted limited partnership unit. Results were impacted by a $9.7 million unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and $3.5 million of general and administrative expense associated with the Partnership's management incentive plans which are directly linked to the Partnership's unit price. Adjusted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Hal Washburn, Co-CEO of BreitBurn, said, "Our production volumes, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and general and administrative expenses, are consistent with our expectations for the quarter and we reaffirm today the annual guidance for 2007 that we announced on March 5." Randy Breitenbach, Co-CEO of BreitBurn, said "During our first quarter as a public entity, we completed our first acquisition and paid our initial quarterly cash distribution. Our quarterly production results continue to demonstrate that our long-lived assets are well suited for an upstream MLP. We continue to evaluate opportunities, including acquisitions, to execute on our growth strategy in the quarters ahead." Operations Update During the quarter ended March 31, 2007, average daily production totaled 4,813 boe per day and aggregate volumes for the period totaled 433,000 boe. Additional production from our recent acquisition in West Texas was partially offset by expected natural declines at our California and Wyoming properties. As a result of unforeseen production interruptions at two of our properties, our production in the second quarter of 2007 may be less than we had expected and any shortfalls would be reflected in our second quarter operating results. These issues have been resolved, production is back online, and we expect our 2007 annual production to be within the previously announced guidance range. First Quarter 2007 Financial Review Oil, natural gas and natural gas liquid sales were $21.4 million, excluding the effects of derivatives. Revenues, including realized gains on derivative instruments of $3.0 million, totaled $24.4 million. There was an unrealized loss on derivative instruments of $9.7 million during the quarter. Realized prices during the quarter were $49.37 per boe. Including the effects of realized gains on derivative instruments, realized prices were $56.36 per boe. Additional information on the Partnership's derivative instruments, including derivative instruments entered into subsequent to March 31, 2007, is included below. Operating Costs operating costs npl → gastos mpl operacionales Operating costs for the quarter totaled $8.7 million, or $20.06 per boe, reflecting increased contractor and utility costs in California and higher costs in Wyoming related to unanticipated well work and well work done in advance of our 2007 drilling program. Depletion, Depreciation and Amortization (DD&A) DD&A expense for the period totaled $3.1 million, or $7.13 per boe. Under the successful efforts method of accounting, the Partnership calculates DD&A on an individual producing field basis. Changes in reserve estimates and in the timing and amount of abandonment cost estimates as well as changes in the timing and amount of development projects of one or two fields can cause variations in the aggregate DD&A rate. General and Administrative Expenses (G&A) G&A expenses for the period totaled $7.5 million. This amount included $3.5 million of expense associated with the Partnership's unit-price based management incentive plans resulting solely from a 34% increase in the price of the Partnership's publicly traded units during the quarter. [TABLE OMITTED] Location and quality differentials attributable to the Partnership properties are not reflected in the above prices. The agreements provide for monthly settlement based on the difference between the agreement price and the actual NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). crude oil price. Non-GAAP Financial Measures This press release, the financial tables and other supplemental information, including the reconciliations of certain non-generally accepted accounting principles ("non-GAAP") measures to their nearest comparable generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") measures, may be used periodically by management when discussing the Partnership's financial results with investors and analysts and they are also available on the Partnership's website under the Investor Relations Investor relations The process by which the corporation communicates with its investors. tab. Among the non-GAAP financial measures used are "Adjusted EBITDA." This non-GAAP financial measure should not be considered as an alternative to GAAP measures, such as net income, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. or any other GAAP measure of liquidity or financial performance. Adjusted EBITDA is presented as management believes it provides additional information and metrics relative to the performance of the Partnership's business, such as the cash distributions we expect to pay to our unitholders, as well as our ability to meet our debt covenant compliance tests. Management believes that these financial measures indicate to investors whether or not cash flow is being generated at a level that can sustain or support an increase in our quarterly distribution rates. Adjusted EBITDA may not be comparable to a similarly titled measure of other publicly traded partnerships Publicly Traded Partnership A limited partnership that also has interests traded in the equity securities market. Notes: This is also known as a master limited partnership. See also: Master Limited Partnership, Partnership, Public Company or limited liability companies because all companies may not calculate Adjusted EBITDA in the same manner. The following table presents a reconciliation of the Partnership's consolidated net income to Adjusted EBITDA: [TABLE OMITTED] Cash Distribution On May 15, 2007, the Partnership will pay a cash distribution of approximately $9.3 million to its general partner and common unitholders of record as of the close of business on May 7, 2007. The distribution that will be paid to unitholders is $0.4125 per common unit. Conference Call As announced on May 8, 2007, BreitBurn Energy Partners L.P. will host an investor conference call to discuss the Partnership's results today at 5 p.m. (Eastern). Investors may access the conference call over the Internet via the Investor Relations tab of the Partnership's website (www.breitburn.com), or via telephone by dialing 800-289-0572 (international callers dial +1 913-981-5543) a few minutes prior to the call to register. Those listening via the Internet should go to the site 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the call will be available through Monday, May 21, by dialing 888-203-1112 (international callers dial +1 719-457-0820) and entering replay PIN 4898398, or by going to the Investor Relations tab of the Partnership's website (www.breitburn.com). BreitBurn Energy Partners L.P. will take live questions from securities analysts and institutional portfolio managers; the complete call is open to all other interested parties on a listen-only basis. About BreitBurn Energy Partners L.P. BreitBurn Energy Partners L.P. is an independent oil and gas MLP, recently formed by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties. The Partnership's assets consist primarily of producing and non-producing crude oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally located in the Los Angeles Basin The Los Angeles Basin is the coastal sediment-filled plain located between the peninsular and transverse ranges in southern California in the United States containing the central part of the city of Los Angeles as well as its southern and southeastern suburbs (both in Los Angeles in California, the Wind River and Big Horn Big Horn is a tall peak in the Cascade Range in Washington, USA. At 2438+ meters (8,000 feet) in elevation, it is the highest point in Lewis County, Washington.[1] Big Horn, one of the Goat Rocks, is the second highest point on the ridge west of Mt. Basins in central Wyoming, and the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. in West Texas. Additional information is available at www.breitburn.com. Cautionary Statement Relevant to Forward -Looking Information for the Purpose of "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This press release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Partnership's operations that are based on management's current expectations, estimates and projections about its operations. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimated," and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; the competitiveness of alternate energy sources or product substitutes; technological developments; potential disruption or interruption of the Partnership's net production due to accidents or severe weather; the effects of changed accounting rules under generally accepted accounting principles promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by rule-setting bodies; and the factors set forth under the heading "Risk Factors" in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements. BBEP-IR [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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