BBEP is a name that does not get much attention but it is a very dynamic investment option. BBEP is independent oil and gas limited partnership, focused on the acquisition, exploitation and development of oil and gas properties for the purpose of generating cash flow to make distributions to its unit holders.
The partnership's assets consist primarily of producing and non-producing crude oil and natural gas reserves located in the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Powder River Basin in eastern Wyoming, the Evanston and Green River Basins in southwestern Wyoming, the Sunniland Trend in Florida, the Permian Basin in Texas, the Antrim Shale in Michigan, and the New Albany Shale in Indiana and Kentucky.
BBEP has a balanced production mix which is 50% oil to 50% natural gas. It has estimated proved reserves of 151.1 MMboe on the books. BBEP recently increased its 2012 capital spending to approximately $137 million, and those funds will be focused on oil projects in legacy assets and developing newly acquired assets in Texas and Wyoming. The partnership is targeting a 21% year-over-year production growth in 2012. This basically boils down to more income for the unit holders.
BBEP is targeting approximately a 5% annual distribution growth rate supported by ongoing acquisition activity, and has increased distributions for nine consecutive quarters. A strong second half of 2012 has been positive for investors as the coverage ratio guidance range has been calculated to be 1.2x to 1.3x.
