Past year: ▼ 95%(0.25c – 7.40c USD)
Each one in plain English, with the numbers worked through for a shareholder.
7 Oct 2010debt financing● NeutralMajor
Breitburn's first bond issue: $305 million of 8.625% notes due 2020, sold privately to institutions, with the bank borrowing base reaffirmed alongside. The partnership now had long-dated debt as well as a revolver - the beginning of the capital structure that eventually broke it.
9 Feb 2010material agreement▲ GoodMajor
Breitburn agreed with Quicksilver and Provident to settle all litigation, paying Quicksilver $13 million that it expected insurance to cover. It intended to reinstate quarterly distributions at $0.375 a unit ($1.50 a year) from Q1 2010, if coverage was at least 1.2, with Quicksilver gaining two board seats.
23 Dec 2008security holder rights change● Neutral
With the unit price collapsing in the 2008 crash, the board adopted a takeover defence: every unitholder got a right to buy an extra unit at $40 if anyone accumulated 20% or more. A defensive move, not an operational one.
2 Sept 2008material agreement● NeutralMajor
The other half of the Provident separation: Breitburn's own senior managers, with Metalmark Capital and Greenhill Capital, bought the California predecessor company BreitBurn Energy Company from Provident. That company became a permanent related party - the same two co-CEOs sat on both sides - governed by a services agreement and a non-compete that split future opportunities between them.
23 June 2008asset acquisition disposition● NeutralMajor
Breitburn bought its own sponsor out: it paid Provident Energy Trust $335 million for 14.4 million of its own units and a further $10 million for 95.55% of the management company that controls its general partner. From here the partnership ran itself rather than being run by a Canadian parent.
