Upstream MLP BreitBurn Energy Partners (BBEP) last week announced a major equity offering. BreitBurn will issue 15 million shares and will use the proceeds to pay off debt incurred from the partnership's acquisition in the Oklahoma panhandle. In a previous article, written back in July, I advised that it was best to either wait for BreitBurn to announce its secondary offering or for units to drop to $17 before buying.
With the exception of one horrifying drop due to a headline event from upstream MLP giant Linn Energy (LINE), BreitBurn units have not dropped below $17.20. And just last week management announced the aforementioned share offering. As it is right now, units of BreitBurn are trading at $19. While...
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