BreitBurn Energy Partners eyes growth through acquisitions in 2011

By Jennifer Lanning Drey

Savannah, Ga., May 25 - BreitBurn Energy Partners LP is looking to grow through acquisitions in 2011, Hal Washburn, the company's co-chief executive officer, said Wednesday during a presentation at the NAPTP Master Limited Partnership Investor Conference in Greenwich, Conn.

"We're well positioned both from an operational and financial perspective to execute on our growth-through-acquisitions strategy," he said.

BreitBurn spent 2010 focusing on improving its financial flexibility, Washburn noted.

The company executed a $305 million senior notes offering in the fourth quarter, which was followed by a $100 million equity offering in February.

Additionally, BreitBurn recently completed its semiannual borrowing base redetermination with its bank group and had its borrowing based raised to $735 million from $659 million.

The company currently has about $120 million outstanding on its revolving credit facility, leaving more than $600 million available under the facility, he said.

Washburn also said BreitBurn plans to spend between $70 million and $74 million across its asset base in 2011, with about 60% of the spending going to drilling new wells.

About 70% of BreitBurn's capital budget will be spent in oil-producing areas, although the company is not leaving the gas-producing areas entirely, he said.

Based in Los Angeles, BreitBurn is a limited partnership focused on the acquisition, exploitation and development of oil and gas properties.

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