BreitBurn Energy Partners L.P. NASDAQ: BBEP Investor Presentation 1988 2013 Silver Anniversary Halbert S. Washburn Chief Executive Officer April 2013
BBEP: Key Investment Considerations Predecessor founded in 1988, 2006 IPO E&P MLP 25 years of Successful Focused on acquisition, exploitation and development of oil and gas properties Operatorship Enterprise value: 2.8 billion…
Geographically Diversified Asset Base Significant Operations Diversified Among Seven States BreitBurn 2012 Totals(1) Total Production: 8,318 Mboe (26,426 Boe/d) Est. Proved Reserves: 149.4 MMBoe Reserve Mix: 49% Oil / 4% NGL / 47%…
Proven Business Strategy Since 1988 Operational Expertise Acquisition Criteria Mature properties with large amounts of OOIP Excellent industry experience and responsible management Consistent with current asset base Strong track…
Successful Operating Plan that Pays Sequential Distribution Growth 11 consecutive quarters of distribution growth FY 2012 distribution growth of 7%(1) Accretive Acquisitions Acquire assets that complement existing portfolio and…
Significant Growth Since IPO Since 2006 IPO, BBEP: Expanded operations from 2 states to 7 states; Grown estimated proved reserves and avg. daily production by almost 400% Increased gross productive wells from 640 to over 5,400 FY…
An Expanding Portfolio of Great MLP Assets Portfolio Highlights Geographically diverse across 7 states, concentrated in mature basins with operations dating to 1800s Long-life (17+ years reserve life), low decline assets with…
High Margin, High Growth Reserve Base Liquids % of Estimated Proved Reserves Increased Focus on Oil Focus on expanding oil / liquids 53% opportunities since 2010 Acquisitions were key drivers of 35% increased oil exposure 53% of…
Operational Overview
Wyoming Operating Area Asset Overview Asset Map Key Basins: Wind River, Big Horn, Green River, Powder River Sheridan Wells first drilled in 1884; long, active production history Park Big Horn Crook Total acreage: 218,109 gross,…
Texas Operating Area Asset Overview Asset Map Key Basin: Permian CochranHockley Lubbock Crosby Dickens BreitBurn Operating Partner: CrownQuest (66% operatorship currently; Knott Area Yoakum Terry Lynn Garza Kent 22% operatorship…
California Operating Area Asset Overview Asset Map Key Fields: Santa Fe Springs, Belridge, East Coyote, Sawtelle Concentrated in large, complex oil fields within the Los San Luis East Coyote Obispo Kern Angeles and San Joaquin…
Florida Operating Area Asset Overview Asset Map Key fields: Raccoon Point, Bear Island, West Felda, Lehigh Acres Martin Lehigh Charlotte Glades Sunoco Felda Production is from the Cretaceous Sunniland Trend of Lee Hendry South…
Michigan Operating Area Asset Overview Asset Map Key fields: Antrim Shale; Prairie du Chien, Richfield, Detroit Michigan Antrim River Zone III, and Niagaran Pinnacle Reefs Shale BBEP is the largest gas producer in MI; one of the…
Option Value in Large Resource Plays Utica Collingwood & A-1 Carbonate Utica Collingwood Shale Highlights BreitBurns prospective lease position is over 130,000 net acres (85% is held by production) Acreage is primarily in the wet gas…
2013 Capital Program Summary 2013 capital budget (excluding acquisitions) totals 260 million 97% of total capital to be spent on oil projects Drilling / re-drilling 135 wells in 5 states Up to 10 rigs running in 2013 Capital…
Acquisition Overview
Disciplined Acquisition Strategy BreitBurn acquisition strategy unchanged for 25 years 2012 Transaction Activity 15 person business development and acquisition evaluation team Screened 500 opportunities Acquire mature oil and gas…
2012 Acquisition Activity 2012 acquisitions totaled over 600 million Increased total estimated proved reserves by 34 MMBoe Consisted of principally oil assets with organic growth opportunities Close Purchase Resource Est. Proved…
Acquisitions Accretive to DCF Production growth through acquisitions offset a portfolio of assets with natural decline curves BBEP target acquisition criteria: Immediately accretive to distributable cash flow (DCF) 5x-6x EBITDA…
Financial Overview
Operating and Financial Performance Strong Operating and Financial Performance Since 2006 IPO Production (Mboe) Adjusted EBITDA (MM) 31.1% CAGR 30.2% CAGR 9,000 8,318 295.8 300 8,000 6,809 7,037 6,517 6,699 250 233.0 226.9…
Disciplined Financial Strategy Liquidity: Maintain solid liquidity profile Leverage: Seek to maintain low leverage ratios Maintain debt to LTM Adjusted EBITDA ratio 3.0x Acquisitions financed with 50% - 60% equity and 40% - 50%…
Consistent Distribution Growth for Eleven Straight Quarters Distributions Sequential Quarterly Distribution Growth Tax advantaged income (75% shield) 1 Eleven quarters of consecutive distribution increases since Q1 2010 Partnership…
Commodity Price Protection Portfolio: 9ME 12/31/13 FY 2017 The chart assumes (i) 9ME 12/31/13 FY 2017 base business production remains constant at the annualized midpoint of the Partnership's 2013 production guidance (approximately 9.8…
Mitigating Commodity Price Volatility Our hedge portfolio has significantly mitigated crude oil and natural gas price fluctuations as evidenced by our quarterly Adjusted EBITDA 160 16 90 140 14 78 120 12 NYMEX Natural Gas /…
BBEP Value Proposition BBEP has attractive yield compared to peer group With current consensus target price of 22, BBEP has an implied yield of 8.5% BBEP offers attractive opportunity for price appreciation BBEP Target 12.0% 11.0%…
Investment Highlights Responsible Management: Experienced management team has an average of over 25 years of industry experience Quality Assets: High quality asset base with predictable, long-lived production offering Critical…
Appendix1 (1) Financial statements included in the Appendix are from the 2012 10-K.
2013 Public Guidance ( in 000s) FY 2013 Guidance Total Production (Mboe): 9,500 - 10,100 Oil Production (Mbbls) 5,050 - 5,350 Gas Production (MMcfe) 26,700 - 28,500 December 2013 Exit Rate (boe/d) 27,700 - 28,850 Average Price…
2013 Public Guidance Notes 1) Approximately 30% of oil production is expected to be sold based on Brent pricing. 2) Operating Costs include lease operating costs, processing fees, district expense, and transportation expense. Expected…
Historical Financial Statements Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, September 30, December 31, Thousands of dollars 2012 2012 2011 20122012 2011 2012 Reconciliation of net income (loss) to…
Historical Financial Statements Adjusted EBITDA (continued) Three Months Ended Year Ended December 31, December 31, September 30, December 31, Thousands of dollars 2012 2012 2011 2012 2011 Reconciliation of net cash flows from…
Historical Financial Statements Consolidated Balance Sheets BreitBurn Energy Partners L.P. and Subsidiaries BreitBurn Energy Partners L.P. and Subsidiaries Consolidated Balance Sheets Consolidated Balance Sheets December 31,…
Historical Financial Statements Consolidated Statement of Operations BreitBurn Energy Partners L.P. and Subsidiaries Consolidated Statements of Operations Three Months Ended Year Ended December 31, December 31, Thousands of dollars,…
Historical Financial Statements Consolidated Statement of Cash Flows BreitBurn Energy Partners L.P. and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, Thousands of dollars 2012 2011 Cash flows from…
BreitBurn Energy Partners L.P. NASDAQ: BBEP Investor Presentation 1988 2013 Silver Anniversary Halbert S. Washburn Chief Executive Officer April 2013
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