Replies to post #2256 on Breitburn Energy Partners LP fka BBEPQ

[black_slk320]

Any of the valuations are based on a projected oil price. Since the end of October, oil is down over $5/barrel. With proved reserves of 240M barrels, the value has dropped by over $1.25B (which is why I say shareholders need an OPEC production cut at the end of November).

They don't need to sell assets to show what the company is worth. Please read Martin Lewis" letter to the judge He values the company multiple ways (cash flow, comparable MLP's , lease rates, etc.) you name it and he has done his home work. Middle of the road analysis came back with a 4.2B valuation . That means 3B to bond holders 500MM to preferreds and 700MM left for common. This will be the starting point for the Equity committee . Deadline is tomorrow by the way.

Any valuation model will have a formula where you plug in the price of oil and shareholders will get nothing if oil stays around $45/barrel. The MOR from the end of October shows $667M in equity and that was for a month where oil was in the low $50s.

The assets are only worth what someone else will pay for them. At $45, the assets are not worth much.