Thursday, BreitBurn Energy Partners L.P. (BBEP) reported a swing to first-quarter profit, despite a drop in product revenue, benefiting from a $70 million gain from commodity derivative instruments.
The Los Angeles-based company reported a net income attributable to limited partners of $46.35 million or $0.84 per share for the first quarter, compared to a net loss attributable to limited partners of $40.87 million or $0.61 per share a year ago.
Net income for the quarter was $46.36 million or $0.84 per share, compared to a net loss of $41.09 million or $0.61 per share in the year-earlier period.
On average, four analysts polled by Thomson Reuters estimated earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter increased to $127.94 million from $33.34 million in the prior-year quarter.
Analysts, on average, expected revenue of $84.14 million for the quarter.
Revenue from oil, natural gas, and liquid gas sales declined to $57.64 million from $115.85 million in the first quarter of 2008. The company had a gain of $70.02 million on commodity derivative instruments in the first quarter, compared to a loss of $83.39 million a year ago.
Operating income for the quarter was $53.7 million, compared to an operating loss of $34.46 million in the same quarter last year.
Extensive hedging portfolio mitigated the impact of the significant year-over-year decline in oil and gas prices. Realized crude oil and liquids prices averaged $62.38 per barrel of oil equivalent, or Boe, and realized natural gas prices averaged $7.99 per Mcf, compared to $69.81 per Boe and $7.94 per Mcf, respectively.
Average daily production decreased to 17,811 Boe per day in the first quarter of 2009 compared to 18,901 Boe per day in the comparable year-ago period.
BBEP closed Thursday's regular trading at $7.66, up $0.37 or 5.08%, on a volume of 655K shares on the Nasdaq.
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