A Quick Look at BreitBurn Energy Partners L.P. (BBEP)’s Earnings

Foolish bottom line
While the numbers might not have met expectations, it was still a solid quarter. The company is reasonably well hedged; however, it’s not as fully hedged as competitor Linn Energy LLC (NASDAQ:LINE). This can cause realized oil and gas prices to fluctuate from quarter to quarter along with the underlying commodities. LINN, which is 100% hedged for the next few years, doesn’t have to deal with commodity price fluctuations to the same degree as BreitBurn Energy Partners L.P. (NASDAQ:BBEP), which is only around 80% hedged this year. While that can lead to upside in some quarters, as seen in the current quarter, this can have the opposite effect, as well. Despite that, BreitBurn pays a very generous and growing distribution that’s now over 10%, which is an excellent yield given the current low yield environment.

The article A Quick Look at BreitBurn Energy Partners’ Earnings originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of Linn Energy, LLC. The Motley Fool recommends BreitBurn Energy Partners L.P. (NASDAQ:BBEP)

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