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