BreitBurn Energy Partners LP
), a master limited partnership, has entered into a deal with
CrownRock LP, an exploration and production firm.
Per the agreement, BreitBurn Energy is expected to buy extra oil
and gas resources located in the Permian Basin, Texas. The
transaction, estimated to be worth $282.0 million, is likely to
close by 2013, depending on customary closing arrangements and a
revised acquisition price. The partnership added that he asset
purchase is anticipated to be financed with debt from bank credit
As of Oct 2013, the to-be acquired assets, comprising more than
300 prospective drilling areas with 93 wells, produced roughly
2,900 barrels of oil equivalent per day. BreitBurn Energy reveals
that 60.0% of the total output was oil. Moreover, the proved
reserve of the oil and gas resources is estimated to be about
16.6 million barrels of oil equivalent. Additionally, BreitBurn
Energy estimates the operating cost of the producing well to be
as low as $7.00 per barrel.
BreitBurn Energy expects the acquisition to immediately benefit
unitholders with increased cash flow.
Los Angeles, California-based BreitBurn Energy is involved in the
acquisition, development, and production of domestic oil and gas
BreitBurn Energy currently carries a Zacks Rank #3 (Hold), which
implies that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the
exploration and production sector like
Abraxas Petroleum Corp.
Harvest Natural Resources Inc.
Clayton Williams Energy Inc.
) that offer value. All the stocks sport a Zacks Rank #1 (Strong
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
BREITBURN EGY (BBEP): Free Stock Analysis
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
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