Breitburn:
9.4% Yield
March 26, 2012 |
Eagle Rock:
19% Projected Growth
March 27, 2012 |
ONEOK Partners:
Guiding Higher
April 3, 2012 |
QR Energy:
Latest Acquisition
March 19, 2012 |
Breitburn Energy Partners, LP has an EV of $2.0 billion and was recently added to the benchmark Alerian MLP Index. Slide above shows BBEP has an attractive yield of 9.4% (as of March 22, 2012) vs. Alerian Index yield of 5.8%. BBEP is substantially hedged through 2015 at weighted average prices of $95.01/bbl and $6.16/mcf. Assets include of 907 Bcfe (18 year R/P, 65% gas / 35% oil, 87% PDP). BBEP is currently pursuing acquisitions. |
Eagle Rock Energy Partners, LP is a growth MLP engaged in both the midstream (45%) and upstream (55%) sectors. EV is $2.2 billion and annualized distributions to unitholders are projected to grow 19% in 2012 to $1.00/unit. EROC is the leading midstream company in the Granite Wash play in the TX Panhandle and has a low risk drilling inventory for its upstream business. EROC maintains a strong credit profile and capital availability.
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ONEOK Partners owns midstream gas and NGL businesses and provides non-discretionary, primarily fee-based services to producers and consumers. OKS expects its fee-based margins to increase to 57% in 2012 (from 50% in 2011). The company has planned $2.7 to $3.3 billion in growth projects until 2014, including the Bakken ($1.5 to $1.8B). OKS expects per unit distributions to grow from $0.61 (1Q12) to $0.71 (1Q13).
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QR Energy, LP (QRE) IPO'd in December 2010 (the largest E&P MLP IPO to date) and has a 75% retail orientation. QRE is positioned to acquire conventional oil and gas assets as E&P companies raise capital in pursuit of resource plays. The latest acquisition, shown above, is a $230 million buy of low decline liquids rich assets in the Ark-La-Tex region. The asset profile is 13.0 MMboe, 1,178 boed production (95% liquids, 98% PD and 88% PDP).
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