Breitburn Energy Partners announces results for fourth quarter and full-year 2015
Breitburn Energy Partners LP (NASDAQ:BBEP) today announced financial and operating results for the fourth quarter and full year 2015 as well as operational guidance for its expected performance in 2016.
- Annual production of 20.2 million Boe, at high-end of guidance, with average daily production of 55,288 Boe/d for the year.
- Adjusted EBITDA, a non-GAAP financial measure, increased to $169 million in 4Q15, 8.2% higher than 3Q15, despite lower realized oil and NGL prices. 2015 Adjusted EBITDA of $636.8 million (including acquisition and integration costs of $12.6 million and restructuring costs of $5 million) was in line with guidance.
- Pre-tax lease operating expenses were $17.74/Boe in 4Q15, 10.5% lower than 3Q15 and 18.5% lower than 4Q14. 2015 pre-tax lease operating expenses were $19.02/Boe, at low-end of guidance.
- G&A expenses, excluding acquisition and integration costs and non-cash unit based compensation, were $2.48/Boe in 4Q15, 9.4% lower than 3Q15 and the best quarter in Breitburn's history. 2015 G&A expenses, excluding acquisition and integration costs and non-cash unit based compensation, were $3.02/Boe, 13% lower than 2014.
- The estimated fair value of Breitburn's commodity hedge portfolio was approximately $666 million as of December 31, 2015.
Halbert S. Washburn, Breitburn's Chief Executive Officer, said:
'We were very proactive last year in adapting to a volatile commodity price environment. We had strong operating and financial results, with production coming in at the high end of our guidance and our capital, operating, and G&A costs performing in line with or better than our guidance. We were also one of the first oil and gas companies to raise significant capital last year, and through our financing and cost cutting efforts, we were able to reduce our bank borrowings by nearly $1 billion in 2015. In light of the ongoing weakness in commodity prices, we are cutting our 2016 capital program by 60% to approximately $80 million, but because of our quality, long-lived, low-decline assets we only expect a 9% reduction to our 2016 production. With the continued hard work of our experienced team, we believe we are well-positioned to execute our operating plan successfully again this year.'
Breitburn Energy Partners
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