Breitburn Reports

• Posted by ToddSullivan
• on November 6th, 2009

Production “at high end of range”.

Regarding the distribution:

CEO Hal Washburn added, “In addition to our operational success, our financial flexibility continues to improve. We paid down an additional $55 million in debt during the quarter and have reduced borrowings by $160 million since year end 2008. As we move into 2010, our improved liquidity position will allow us the flexibility to accelerate capital spending to at least maintenance capital levels and eventually re-establish distributions when leverage has been reduced to acceptable levels.”

This is the kind of earnings reports that leaves you wanting more. It isn’t bad and in all reality there is improvement over last year and management is ahead of where they’d set a goal the be at. With all that said though, some more specificity on the distribution would have gone a long way. Based on the term of the lending facility, they are able to.

Of course we want the debt paid down and cannot fault management for doing so. We also know that distributions are going to be restarted in 2010. More clarity would have been nice.

Perhaps we will get it when the 10Q is filed.

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