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We added short BreitBurn Energy Partners L.P. (BBEP) to the Hedgeye "Best Ideas" list on Tuesday, July 2nd (email me for a copy of that note if you don't already have it) and will be holding a brief call on Tuesday, July 9th at 1:00pm EDTto walk through the thesis and answer any questions (send to ).

THESIS 


We believe that BBEP's distribution is largely a mirage, funded with capital raises that are disguised with a variety of creative, and perhaps unjustifiable, accounting techniques.  We estimate fair value for BBEP is between $2 - $8 /unit, ~70% below the current unit price of $15.47.

  

KEY ISSUES INCLUDE

  • Derivatives accounting
  • Aggressive adjustments to non-GAAP measures
  • Understated maintenance capex
  • Desperate leverage situation

CALL DETAILS

  • Toll Free Number:
  • Direct Dial Number:
  • Conference Code: 973882#
  • Materials: CLICK HERE (slides will download one hour prior to the start of the call)

Kevin Kaiser

Senior Analyst