BreitBurn Energy Partners L.P. Reports Fourth Quarter and Record Full Year Production and EBITDA Results; Provides Full Year 2013 Guidance

Thu Feb 28, 2013 8:30am EST

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LOS ANGELES--(Business Wire)--
BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP) today announced
financial and operating results for its fourth quarter and full year 2012 as
well as public guidance for its expected performance in 2013, excluding any
future acquisitions. 

Key Highlights

* For the full year 2012, the Partnership reported record net production and
Adjusted EBITDA which increased 18% and 31%, respectively, from 2011. For the
fourth quarter of 2012, net production increased 7% and Adjusted EBITDA
increased 21% from the fourth quarter of 2011. 
* On February 14, 2013, the Partnership increased its cash distributions for the
fourth quarter of 2012 to $0.47 per unit, or $1.88 per unit on an annualized
basis. 
* For the full year 2012, the Partnership paid cash distributions of $1.85 per
unit, representing an increase of 7.2% over 2011 cash distributions of $1.73 per
unit. 
* On December 3, 2012, the Partnership completed the acquisition of oil and gas
properties in Kern County, California for approximately $38 million in cash and
approximately 3 million common units. 
* On December 28, 2012, the Partnership completed acquisitions of oil and gas
properties in the Permian Basin in Texas for approximately $202 million. 
* On February 7, 2013, the Partnership completed a public offering of 14.95
million common units. Net proceeds from the offering were used to reduce
borrowings under the Partnership`s bank credit facility. 
* As of February 27, 2013, the Partnership had $77 million in outstanding
borrowings under its credit facility, which has total lender commitments of $900
million and the ability to increase commitments to $1 billion with lender
approval.

Management Commentary

Hal Washburn, CEO, said: "The Partnership had an exceptional year with record
production, record Adjusted EBITDA, sequential distribution growth, and the
completion of seven acquisitions in Texas, California, and Wyoming. We are very
pleased to have exceeded our acquisition target of $300 million to $500 million
for the year by completing over $600 million in acquisitions which were
primarily oil. We also established a significant presence in the Permian Basin
and greatly expanded the organic growth opportunities in our portfolio. The
Partnership is very well positioned to execute on its 2013 capital program and
its growth through acquisitions strategy." 

Fourth Quarter 2012 Operating and Financial Results Compared to Third Quarter
2012

* Total production increased to a record quarterly high of 2,212 MBoe in the
fourth quarter of 2012 from 2,166 MBoe in the third quarter of 2012. Average
daily production was 24,044 Boe/day in the fourth quarter of 2012 compared to
23,545 Boe/day in the third quarter of 2012.

* Oil and NGL production was 1,005 MBoe compared to 973 MBoe. 
* Natural gas production was 7,243MMcf compared to 7,161 MMcf.

* Adjusted EBITDA, a non-GAAP financial measure, was $78.0 million in the fourth
quarter of 2012 compared to $90.1 million in the third quarter of 2012 primarily
due to the timing of oil shipments from our Florida operations. 
* Lease operating expenses, which include district expenses and processing fees
and exclude production and property taxes and transportation costs, were $18.88
per Boe in the fourth quarter of 2012 as compared to $18.62 per Boe in the third
quarter of 2012. 
* General and administrative expenses, excluding non-cash unit-based
compensation were $4.44 per Boe in the fourth quarter of 2012 as compared to
$3.73 per Boe in the third quarter of 2012. 
* Oil and natural gas sales revenues were $113.2 million for the fourth quarter
of 2012, up from $111.7 million in the third quarter of 2012, primarily
reflecting higher natural gas prices. 
* Realized gains on commodity derivative instruments were $22.5 million in the
fourth quarter of 2012, consistent with realized gains in the third quarter of
2012. 
* NYMEX WTI crude oil spot prices averaged $88.01 per barrel and Brent crude oil
spot prices averaged $110.15 per barrel in the fourth quarter of 2012 compared
to $92.17 per barrel and $109.63 per barrel, respectively, in the third quarter
of 2012. Henry Hub natural gas spot prices averaged $3.40 per Mcf in the fourth
quarter of 2012 compared to $2.88 per Mcf in the third quarter of 2012. 
* Realized crude oil and NGL prices averaged $91.38 per Boe and realized natural
gas prices averaged $6.14 per Mcf in the fourth quarter of 2012, compared to
$89.55 per Boe and $5.89 per Mcf, respectively, in the third quarter of 2012. 
* Net loss attributable to the Partnership, including the effect of unrealized
losses on commodity derivative instruments, was $10.3 million, or $0.13 per
diluted common unit, in the fourth quarter of 2012 compared to net loss of $73.0
million, or $1.00 per diluted common unit, in the third quarter of 2012. 
* Total oil and gas capital expenditures totaled $60 million in the fourth
quarter of 2012 compared to $49 million in the third quarter of 2012.

Full Year 2012 Results

* Total production was 8,318 MBoe in 2012, an increase of 18% from 2011 and the
highest in the Partnership`s history. 
* Adjusted EBITDA, a non-GAAP measure, was $295.8 million, an increase of 31%
from 2011 and a record high for the Partnership. 
* Total oil, natural gas and NGL sales were $413.9 million in 2012, an increase
of 5% from 2011. 
* Oil and gas capital expenditures were $153 million, an increase of 104% from
2011. 
* Full year lease operating expenses per Boe were $19.15, which was 1% lower
than 2011. 
* Full year general and administrative expenses, excluding unit-based
compensation, were $4.00 per Boe, which was 11% lower than 2011. 
* Average realized crude oil prices for 2012 were $90.82 per Boe compared to
NYMEX WTI crude oil prices of $94.05 per barrel. Average realized natural gas
prices were $5.99 per Mcf, compared to Henry Hub prices of $2.75 per Mcf. 
* Net loss attributable to the Partnership, including the effect of unrealized
losses on commodity derivative instruments, was $40.8 million, or $0.56 per
diluted common unit, in 2012 compared to net income of $110.5 million, or $1.79
per diluted common unit, in 2011.

2012 Estimated Proved Reserves

BreitBurn's total estimated proved oil and gas reserves as of December 31, 2012
were 149.4 MMBoe. The standardized measure of discounted future net cash flows
related to our estimated proved reserves was approximately $1.99 billion, using
12-month average first-day-of-the month prices that are held constant throughout
the life of the properties. Estimated proved reserves were determined using
$2.76 per MMBtu for gas and $94.71 per Bbl of oil. Of the total estimated proved
reserves, 53% were oil and 47% were natural gas; 80% were classified as proved
developed; and 35% were located in Michigan, 26% in Wyoming, 17% in California,
15% in Texas and 7% in Florida, with less than 1% in Indiana and Kentucky. 

2013 Guidance

The following guidance is subject to all of the cautionary statements and
limitations described below and under the caption "Cautionary Statement
Regarding Forward-Looking Information." In addition, estimates for the
Partnership's future production volumes are based on, among other things,
assumptions of capital expenditure levels and the assumption that market demand
and prices for oil and gas will continue at levels that allow for economic
production of these products. The production, transportation and marketing of
oil and gas are extremely complex and are subject to disruption due to
transportation and processing availability, mechanical failure, human error,
weather, and numerous other factors. The Partnership's estimates are based on
certain other assumptions, such as well performance, which may actually prove to
vary significantly from those assumed. Operating costs, which include major
maintenance costs, vary in response to changes in prices of services and
materials used in the operation of our properties and the amount of maintenance
activity required. Operating costs, including taxes, utilities and service
company costs, move directionally with increases and decreases in commodity
prices, and we cannot fully predict such future commodity or operating costs.
Similarly, interest rates and price differentials are set by the market and are
not within our control. They can vary dramatically from time to time. Capital
expenditures are based on our current expectations as to the level of capital
expenditures that will be justified based upon the other assumptions set forth
below as well as expectations about other operating and economic factors not set
forth below. The guidance below does not constitute any form of guarantee,
assurance or promise that the matters indicated will actually be achieved.
Rather, the table simply sets forth our best estimate today for these matters
based upon our current expectations about the future based upon both stated and
unstated assumptions. Actual conditions and those assumptions may, and probably
will, change over the course of the year.

                                                                                                                  
   ($ in 000s) Assuming no acquisitions                              FY 2013 Guidance                             
   Total Production (Mboe):                                          9,500               -         10,100         
   Oil Production (Mbbls)                                            5,050               -         5,350          
   Gas Production (MMcfe)                                            26,700              -         28,500         
   December 2013 Exit Rate (boe/d)                                   27,700              -         28,850         
   Average Price Differential %:                                                                                  
   WTI Oil Price Differential %                                      90        %         -         91        %    
   Brent Oil Price Differential %(1)                                 95        %         -         96        %    
   Gas Price Differential %                                          102       %         -         103       %    
   Operating Costs / BOE(2)(3)                                       $18.25              -         $20.25         
   Production / Property Taxes (% of oil & gas revenue)              7.5       %         -         8.0       %    
   G&A (Excl. Unit Based Compensation)                               $33,000             -         $35,000        
   Cash Interest Expense(4)                                          $69,000             -         $71,000        
   Adjusted EBITDA(5)                                                $330,000            -         $340,000       
   Capital Expenditures(6):                                                                                       
   Maintenance Capital                                               $75,000                                      
   Growth Capital                                                    $178,000            -         $188,000       
                                                                                                                  


 (1)    Approximately 30% of oil production is expected to be sold based on Brent pricing.                                                                                        
 (2)    Operating Costs include lease operating costs, processing fees, district expense, and transportation expense. Expected transportation expense totals approximately $6.7   
        million in 2013, largely attributable to our Florida production. Excluding transportation expense, our estimated operating costs range per Boe is approximately $17.58 -  
        $19.58.                                                                                                                                                                   
 (3)    Operating Costs are based on flat price levels for 2013 of $95 per barrel for WTI crude oil, $105 per barrel for Brent crude oil and $3.50 per Mcfe for natural gas.      
        Operating costs generally move with commodity prices but do not typically increase or decrease as rapidly as commodity prices.                                            
 (4)    The Partnership typically borrows on a 1-month LIBOR basis, plus an applicable spread. Estimated cash interest expense assumes a 1-month LIBOR rate of 0.3%.              
 (5)    Assuming the high and low range of our guidance, Adjusted EBITDA, a non-GAAP financial measure, is expected to range between $330 million and $340 million, and is        
        comprised of estimated net income (before non-cash compensation) between $77 million and $65 million, plus unrealized loss on commodity derivative instruments of $27     
        million, plus DD&A of $167 million, plus interest expense between $69 million (high end of Adjusted EBITDA) and $71 million (low end of Adjusted EBITDA). Estimated 2013  
        net income is based on oil prices of $95 per barrel for WTI crude oil, $105 per barrel for Brent crude oil and $3.50 per Mcfe for natural gas. Consequently, differences  
        between actual and forecast prices could result in changes to unrealized gains or losses on commodity derivative instruments, DD&A, including potential impairments of    
        long-lived assets, and ultimately, net income.                                                                                                                            
 (6)    Total oil and gas capital expenditures for 2013 excludes acquisitions, capitalized engineering costs and information technology spending. Maintenance capital is defined  
        as the estimated amount of investment in capital projects and obligatory spending on existing facilities and operations needed to hold production approximately constant  
        for the period.                                                                                                                                                           
                                                                                                                                                                                  


Impact of Derivative Instruments

The Partnership uses commodity and interest rate derivative instruments to
mitigate the risks associated with commodity price volatility and changing
interest rates and to help maintain cash flows for operating activities,
acquisitions, capital expenditures, and distributions. The Partnership does not
enter into derivative instruments for speculative trading purposes. Non-cash
gains or losses do not affect Adjusted EBITDA, cash flow from operations or the
Partnership`s ability to pay cash distributions. 

Realized gains from commodity derivative instruments were $87.6 million for the
year ended December 31, 2012. Realized losses from interest rate derivative
instruments were $5.5 million for the year ended December 31, 2012, which
included $2.5 million in realized loss from the termination of an interest rate
swap. Non-cash unrealized losses from commodity derivative instruments were
$82.0 million and non-cash unrealized gains from interest rate derivative
instruments were $4.4 million for the year ended December 31, 2012. 

Production, Statement of Operations, and Realized Price Information

The following table presents production, selected income statement and realized
price information for the three months ended December 31, 2012 and 2011, the
three months ended September 30, 2012 and the years ended December 31, 2012 and
2011:

                                                                                        Three Months Ended                                                                                 Year Ended December 31,                               
                                                                                        December 31,                     September 30,                    December 31,                                                                           
   Thousands of dollars, except as indicated                                                  2012                             2012                             2011                             2012                             2011           
   Oil, natural gas and NGLs sales                                                      $     113,179                    $     111,700                    $     109,720                    $     413,867                    $     394,393        
   Realized gain (loss) on commodity derivative instruments                                   22,455                           22,496                           (28,851  )                       87,605                           (16,067  )     
   Unrealized gain (loss) on commodity derivative instruments                                 (18,740  )                       (91,914  )                       (8,614   )                       (82,025  )                       97,734         
   Other revenues, net                                                                        700                              796                              894                              3,548                            4,310          
   Total revenues                                                                       $     117,594                    $     43,078                     $     73,149                     $     422,995                    $     480,370        
   Lease operating expenses and processing fees                                         $     41,769                     $     40,325                     $     38,093                     $     159,289                    $     136,441        
   Production and property taxes                                                              10,962                           8,574                            7,946                            33,634                           26,599         
   Total lease operating expenses                                                       $     52,731                     $     48,899                     $     46,039                     $     192,923                    $     163,040        
   Purchases and other operating costs                                                        267                              293                              210                              1,577                            961            
   Change in inventory                                                                        578                              856                              255                              1,279                            1,968          
   Total operating costs                                                                $     53,576                     $     50,048                     $     46,504                     $     195,779                    $     165,969        
   Lease operating expenses pre taxes per Boe (a)                                       $     18.88                      $     18.62                      $     18.45                      $     19.15                      $     19.39          
   Production and property taxes per Boe                                                      4.96                             3.96                             3.85                             4.04                             3.78           
   Total lease operating expenses per Boe                                                     23.84                            22.58                            22.30                            23.19                            23.17          
   General and administrative expenses (excluding unit-based compensation)              $     9,815                      $     8,069                      $     9,480                      $     33,281                     $     31,311         
   Net income (loss) attributable to the partnership                                    $     (10,334  )                 $     (73,003  )                 $     (30,392  )                 $     (40,801  )                 $     110,497        
   Net income (loss) per diluted limited partner unit                                   $     (0.13    )                 $     (1.00    )                 $     (0.51    )                 $     (0.56    )                 $     1.79           
                                                                                                                                                                                                                                                 
   Total production (MBoe)                                                                    2,212                            2,166                            2,065                            8,318                            7,037          
   Oil and NGLs (MBoe) (b)                                                                    1,005                            973                              871                              3,652                            3,255          
   Natural gas (MMcf)                                                                         7,243                            7,161                            7,168                            27,997                           22,697         
   Average daily production (Boe/d)                                                           24,044                           23,545                           22,450                           22,726                           19,281         
   Sales volumes (MBoe)                                                                       2,203                            2,219                            2,080                            8,334                            7,106          
   Average realized sales price (per Boe) (c) (d)                                       $     61.49                      $     60.40                      $     56.48                      $     60.09                      $     58.33          
   Oil and NGLs (per Boe) (c) (d)                                                             91.38                            89.55                            84.00                            90.82                            79.80          
   Natural gas (per Mcf) (c)                                                                  6.14                             5.89                             6.02                             5.99                             6.58           
                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                 
   (a) Includes lease operating expenses, district expenses, transportation expenses and processing fees.                                                                                                                                        
   (b) NGLs account for less than 3% of total production.                                                                                                                                                                                        
   (c) Includes realized gain on commodity derivative instruments.                                                                                                                                                                               
   (d) Includes crude oil purchases.                                                                                                                                                                                                             
                                                                                                                                                                                                                                                 


Non-GAAP Financial Measures

This press release, the financial tables and other supplemental information,
including the reconciliations of certain non-generally accepted accounting
principles ("non-GAAP") measures to their nearest comparable generally accepted
accounting principles ("GAAP") measures, may be used periodically by management
when discussing the Partnership's financial results with investors and analysts,
and they are also available on the Partnership's website under the Investor
Relations tab. 

Among the non-GAAP financial measures used is "Adjusted EBITDA." This non-GAAP
financial measure should not be considered as an alternative to GAAP measures,
such as net income, operating income, cash flow from operating activities or any
other GAAP measure of liquidity or financial performance. In addition, this
press release presents certain non-GAAP financial measures, which exclude the
effect of a $36.8 million loss relating to the early termination of crude oil
derivative contracts in the fourth quarter of 2011. Management believes that
these non-GAAP financial measures enhance comparability to prior periods. 

Adjusted EBITDA is presented as management believes it provides additional
information relative to the performance of the Partnership's business, such as
our ability to meet our debt covenant compliance tests. This non-GAAP financial
measure may not be comparable to similarly titled measures of other publicly
traded partnerships or limited liability companies because all companies may not
calculate Adjusted EBITDA in the same manner. 

Adjusted EBITDA

The following table presents a reconciliation of net income (loss) and net cash
flows from operating activities, our most directly comparable GAAP financial
performance and liquidity measures, to Adjusted EBITDA for each of the periods
indicated.

                                                                                                                                                                                                                                             
                                                                                             Three Months Ended                                                                        Year Ended December 31,                               
                                                                                             December 31,                  September 30,                 December 31,                                                                        
   Thousands of dollars                                                                             2012                          2012                          2011                          2012                           2011            
                                                                                                                                                                                                                                             
   Reconciliation of net income (loss) to Adjusted EBITDA:                                                                                                                                                                                   
                                                                                                                                                                                                                                             
   Net income (loss) attributable to the Partnership                                         $      (10,334  )             $      (73,003  )             $      (30,392  )                    ($40,801  )                    110,497         
                                                                                                                                                                                                                                             
   Unrealized (gain) loss on commodity derivative instruments                                       18,740                        91,914                        8,614                         82,025                         (97,734  )      
   Depletion, depreciation and amortization expense                                                 40,497                        37,270                        31,149                        149,565                        107,503         
   Interest expense and other financing costs (a)                                                   21,171                        16,174                        11,492                        66,675                         42,422          
   Unrealized (gain) on interest rate derivatives                                                   (3,021   )                    (570     )                    (340     )                    (4,368    )                    (480     )      
   Loss on early termination of commodity derivatives (b)                                           -                             -                             36,779                        -                              36,779          
   Loss (gain) on sale of assets                                                                    264                           68                            (71      )                    486                            (111     )      
   Income taxes                                                                                     285                           (647     )                    (321     )                    84                             1,188           
   Unit-based compensation expense (c)                                                              5,329                         5,652                         5,707                         22,184                         22,002          
   Net operating cash flow from acquisitions, effective date through closing date                   5,092                         13,227                        1,808                         19,914                         2,886           
   Adjusted EBITDA                                                                           $      78,023                 $      90,085                 $      64,425                 $      295,764                 $      224,952         
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
                                                                                             Three Months Ended                                                                        Year Ended December 31,                               
                                                                                             December 31,                  September 30,                 December 31,                                                                        
   Thousands of dollars                                                                             2012                          2012                          2011                          2012                           2011            
                                                                                                                                                                                                                                             
   Reconciliation of net cash flows from operating activities to Adjusted EBITDA:                                                                                                                                                            
                                                                                                                                                                                                                                             
   Net cash provided by (used in) operating activities                                       $      25,506                 $      65,725                 $      (241     )             $      191,782                        128,543         
                                                                                                                                                                                                                                             
   Increase (decrease) in assets net of liabilities relating to operating activities                27,655                        (3,935   )                    15,503                        22,492                         18,942          
   Interest expense (a) (d)                                                                         19,885                        15,133                        10,394                        61,807                         37,702          
   Loss on early termination of commodity derivatives (b)                                           -                             -                             36,779                                                       36,779          
   Income from equity affiliates, net                                                               (131     )                    (47      )                    (41      )                    (487      )                    (210     )      
   Incentive compensation expense (e)                                                               (82      )                    -                             (2       )                    (82       )                    (41      )      
   Incentive compensation paid                                                                      -                             -                             -                             -                              78              
   Income taxes                                                                                     98                            (18      )                    278                           400                            474             
   Non-controlling interest                                                                         -                             -                             (53      )                    (62       )                    (201     )      
   Net operating cash flow from acquisitions, effective date through closing date                   5,092                         13,227                        1,808                         19,914                         2,886           
                                                                                                                                                                                                                                             
   Adjusted EBITDA                                                                           $      78,023                 $      90,085                 $      64,425                 $      295,764                 $      224,952         
                                                                                                                                                                                                                                             
   (a) Includes realized loss on interest rate derivatives.                                                                                                                                                                                  
   (b) Represents loss on termination of hedge contracts during the fourth quarter of 2011.                                                                                                                                                  
   (c) Represents non-cash long-term unit-based incentive compensation expense.                                                                                                                                                              
   (d) Excludes amortization of debt issuance costs and amortization of senior note discount/premium.                                                                                                                                        
   (e) Represents cash-based incentive compensation plan expense.                                                                                                                                                                            
                                                                                                                                                                                                                                             


Hedge Portfolio Summary

The table below summarizes the Partnership`s commodity derivative hedge
portfolio as of February 27, 2013. Please refer to the updated Commodity Price
Protection Portfolio via our website for additional details related to our hedge
portfolio.

                                                           Year                                                      
                                            2013           2014            2015           2016           2017        
   Oil Positions:                                                                                                    
   Fixed Price Swaps - NYMEX WTI                                                                                     
   Hedged Volume (Bbls/d)                        5,338          4,814           4,189          1,611          222    
   Average Price ($/Bbl)                    $    91.32     $    93.07      $    96.61     $    91.50     $    88.12  
   Fixed Price Swaps - ICE Brent                                                                                     
   Hedged Volume (Bbls/d)                        4,200          4,800           3,300          2,800          1,548  
   Average Price ($/Bbl)                    $    97.57     $    98.88      $    97.73     $    95.79     $    88.21  
   Collars - NYMEX WTI                                                                                               
   Hedged Volume (Bbls/d)                        500            1,000           1,000          -              -      
   Average Floor Price ($/Bbl)              $    77.00     $    90.00      $    90.00     $    -         $    -      
   Average Ceiling Price ($/Bbl)            $    103.10    $    112.00     $    113.50    $    -         $    -      
   Collars - ICE Brent                                                                                               
   Hedged Volume (Bbls/d)                        -              -               500            500            -      
   Average Floor Price ($/Bbl)              $    -         $    -          $    90.00     $    90.00     $    -      
   Average Ceiling Price ($/Bbl)            $    -         $    -          $    109.50    $    101.25    $    -      
   Puts - NYMEX WTI                                                                                                  
   Hedged Volume (Bbls/d)                        1,000          500             500            1,000          -      
   Average Price ($/Bbl)                    $    90.00     $    90.00      $    90.00     $    90.00     $    -      
   Total:                                                                                                            
   Hedged Volume (Bbls/d)                        11,038         11,114          9,489          5,911          1,769  
   Average Price ($/Bbl)                    $    92.93     $    95.17      $    95.61     $    93.15     $    88.20  
                                                                                                                     
   Gas Positions:                                                                                                    
   Fixed Price Swaps - MichCon City-Gate                                                                             
   Hedged Volume (MMBtu/d)                       37,000         7,500           7,500          7,000          -      
   Average Price ($/MMBtu)                  $    6.50      $    6.00       $    6.00      $    4.51      $    -      
   Fixed Price Swaps - Henry Hub                                                                                     
   Hedged Volume (MMBtu/d)                       21,100         38,600          43,200         18,200         5,571  
   Average Price ($/MMBtu)                  $    4.76      $    4.80       $    4.83      $    4.22      $    4.51   
   Puts - Henry Hub                                                                                                  
   Hedged Volume (MMBtu/d)                       -              6,000           1,500          -              -      
   Average Price ($/MMBtu)                  $    -         $    5.00       $    5.00      $    -         $    -      
   Total:                                                                                                            
   Hedged Volume (MMBtu/d)                       58,100         52,100          52,200         25,200         5,571  
   Average Price ($/MMBtu)                  $    5.87      $    4.99       $    5.00      $    4.30      $    4.51   
                                                                                                                     
   Calls - Henry Hub                                                                                                 
   Hedged Volume (MMBtu/d)                       30,000         15,000          -              -              -      
   Average Price ($/MMBtu)                  $    8.00      $    9.00       $    -         $    -         $    -      
   Deferred Premium ($/MMBtu)               $    0.08      $    0.12       $    -         $    -         $    -      
                                                                                                                     


Other Information

The Partnership will host an investor conference call to discuss its results
today at 10:00 a.m. (Pacific Time). Investors may access the conference call
over the Internet via the Investor Relations tab of the Partnership's website
(www.breitburn.com), or via telephone by dialing 800-572-7025(international
callers dial +1-719-325-2191) a few minutes prior to register. Those listening
via the Internet should go to the site 15 minutes early to register, download
and install any necessary audio software. In addition, a replay of the call will
be available through March 14, 2013 by dialing 877-870-5176 (international
callers dial +1-858-384-5517) and entering replay PIN 8245339, or by going to
the Investor Relations tab of the Partnership's website (www.breitburn.com). The
Partnership will take live questions from securities analysts and institutional
portfolio managers; the complete call is open to all other interested parties on
a listen-only basis. 

About BreitBurn Energy Partners L.P.

BreitBurn Energy Partners L.P. is a publicly traded independent oil and gas
limited partnership focused on the acquisition, exploitation, development and
production of oil and gas properties. The Partnership`s producing and
non-producing crude oil and natural gas reserves are located in Michigan,
Wyoming, California, Texas, Florida, Indiana and Kentucky. See www.BreitBurn.com
for more information. 

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements relating to the
Partnership`s operations that are based on management's current expectations,
estimates and projections about its operations. Words and phrases such as
"believes," "expected," "future," "impact," "guidance," "assuming," "forecast,"
"will be" and variations of such words and similar expressions are intended to
identify such forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties and other
factors, some of which are beyond our control and are difficult to predict.
These include risks relating to the Partnership`s financial performance and
results, availability of sufficient cash flow and other sources of liquidity to
execute our business plan, prices and demand for natural gas and oil, increases
in operating costs, uncertainties inherent in estimating our reserves and
production, our ability to replace reserves and efficiently develop our current
reserves, political and regulatory developments relating to taxes, derivatives
and our oil and gas operations, risks relating to our acquisitions, and the
factors set forth under the heading "Risk Factors" incorporated by reference
from our Annual Report on Form 10-K filed with the Securities and Exchange
Commission, and if applicable, our Quarterly Reports on Form 10-Q and our
Current Reports on Form 8-K. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements. The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Unless
legally required, the Partnership undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information, future
events or otherwise. Unpredictable or unknown factors not discussed herein also
could have material adverse effects on forward-looking statements.

   BreitBurn Energy Partners L.P. and Subsidiaries                                                               
   Unaudited Consolidated Balance Sheets                                                                         
                                                                                                                 
                                                                                                                 
                                                   December 31,                       December 31,               
   Thousands                                               2012                               2011               
   ASSETS                                                                                                        
   Current assets                                                                                                
   Cash                                            $       4,507                      $       5,328              
   Accounts and other receivables, net                     67,862                             73,018             
   Derivative instruments                                  34,018                             83,452             
   Related party receivables                               1,413                              4,245              
   Inventory                                               3,086                              4,724              
   Prepaid expenses                                        2,779                              2,053              
   Total current assets                                    113,665                            172,820            
   Equity investments                                      7,004                              7,491              
   Property, plant and equipment                                                                                 
   Oil and gas properties                                  3,363,946                          2,583,993          
   Other assets                                            14,367                             13,431             
                                                           3,378,313                          2,597,424          
   Accumulated depletion and depreciation                  (666,420   )                       (524,665   )       
   Net property, plant and equipment                       2,711,893                          2,072,759          
   Other long-term assets                                                                                        
   Derivative instruments                                  55,210                             55,337             
   Other long-term assets                                  27,722                             22,442             
                                                                                                                 
   Total assets                                    $       2,915,494                  $       2,330,849          
   LIABILITIES AND EQUITY                                                                                        
   Current liabilities                                                                                           
   Accounts payable                                $       42,497                     $       27,203             
   Derivative instruments                                  5,625                              8,881              
   Revenue and royalties payable                           22,262                             19,641             
   Salaries and wages payable                              10,857                             13,655             
   Accrued interest payable                                13,002                             6,291              
   Accrued liabilities                                     20,997                             14,218             
   Total current liabilities                               115,240                            89,889             
                                                                                                                 
   Credit facility                                         345,000                            520,000            
   Senior notes, net                                       755,696                            300,613            
   Deferred income taxes                                   2,487                              2,803              
   Asset retirement obligation                             98,480                             82,397             
   Derivative instruments                                  4,393                              3,084              
   Other long-term liabilities                             4,662                              4,849              
   Total liabilities                                       1,325,958                          1,003,635          
   Equity                                                                                                        
   Partners' equity                                        1,589,536                          1,326,764          
   Noncontrolling interest                                 -                                  450                
   Total equity                                            1,589,536                          1,327,214          
                                                                                                                 
   Total liabilities and equity                    $       2,915,494                  $       2,330,849          
                                                                                                                 
   Common units outstanding                                84,668                             59,864             
                                                                                                                 


   BreitBurn Energy Partners L.P. and Subsidiaries                                                                                                           
   Unaudited Consolidated Statements of Operations                                                                                                           
                                                                                                                                                             
                                                                  Three Months Ended                              Year Ended                                 
                                                                  December 31,                                    December 31,                               
   Thousands of dollars, except per unit amounts                       2012                    2011                    2012                    2011          
                                                                                                                                                             
   Revenues and other income items                                                                                                                           
   Oil, natural gas and natural gas liquid sales                  $    113,179            $    109,720            $    413,867            $    394,393       
   Gain (loss) on commodity derivative instruments, net                3,715                   (37,465  )              5,580                   81,667        
   Other revenue, net                                                  700                     894                     3,548                   4,310         
   Total revenues and other income items                               117,594                 73,149                  422,995                 480,370       
   Operating costs and expenses                                                                                                                              
   Operating costs                                                     53,576                  46,504                  195,779                 165,969       
   Depletion, depreciation and amortization                            40,497                  31,149                  149,565                 107,503       
   General and administrative expenses                                 15,144                  15,187                  55,465                  53,313        
   Loss (gain) on sale of assets                                       264                     (71      )              486                     (111     )    
   Unreimbursed litigation settlement costs                            -                       (113     )              -                       (113     )    
                                                                                                                                                             
   Operating income (loss)                                             8,113                   (19,507  )              21,700                  153,809       
                                                                                                                                                             
   Interest expense, net of capitalized interest                       17,975                  11,395                  61,206                  39,165        
   Loss on interest rate swaps                                         175                     (243     )              1,101                   2,777         
   Other expense (income), net                                         12                      1                       48                      (19      )    
   Total other expense                                                 18,162                  11,153                  62,355                  41,923        
                                                                                                                                                             
   Income (loss) before taxes                                          (10,049  )              (30,660  )              (40,655  )              111,886       
                                                                                                                                                             
   Income tax expense (benefit)                                        285                     (321     )              84                      1,188         
                                                                                                                                                             
   Net income (loss)                                                   (10,334  )              (30,339  )              (40,739  )              110,698       
                                                                                                                                                             
   Less: Net income attributable to noncontrolling interest            -                       (53      )              (62      )              (201     )    
                                                                                                                                                             
   Net income (loss) attributable to the partnership                   (10,334  )              (30,392  )              (40,801  )              110,497       
                                                                                                                                                             
   Basic net income (loss) per unit                               $    (0.13    )         $    (0.51    )         $    (0.56    )         $    1.80          
   Diluted net income (loss) per unit                             $    (0.13    )         $    (0.51    )         $    (0.56    )         $    1.79          
                                                                                                                                                             


   BreitBurn Energy Partners L.P. and Subsidiaries                                                                                                    
   Unaudited Consolidated Statements of Cash Flows                                                                                                    
                                                                                                                                                      
                                                                                                                                                      
                                                                                        Year Ended                                                    
                                                                                        December 31,                                                  
   Thousands of dollars                                                                         2012                                2011              
                                                                                                                                                      
   Cash flows from operating activities                                                                                                               
   Net income (loss)                                                                    $       (40,739     )               $       110,698           
   Adjustments to reconcile net income to cash flow from operating activities:                                                                        
   Depletion, depreciation and amortization                                                     149,565                             107,503           
   Unit-based compensation expense                                                              22,266                              22,043            
   Unrealized loss (gain) on derivative instruments                                             77,657                              (98,214   )       
   Income from equity affiliates, net                                                           487                                 210               
   Deferred income taxes                                                                        (316        )                       714               
   Loss (gain) on sale of assets                                                                486                                 (111      )       
   Other                                                                                        4,472                               (312      )       
   Changes in assets and liabilities:                                                                                                                 
   Accounts receivable and other assets                                                         (23,284     )                       (17,833   )       
   Inventory                                                                                    1,638                               2,597             
   Net change in related party receivables and payables                                         2,832                               100               
   Accounts payable and other liabilities                                                       (3,282      )                       1,148             
   Net cash provided by operating activities                                                    191,782                             128,543           
   Cash flows from investing activities                                                                                                               
   Capital expenditures                                                                         (135,932    )                       (78,107   )       
   Proceeds from sale of assets                                                                 1,129                               2,339             
   Property acquisitions                                                                        (562,356    )                       (338,805  )       
   Net cash used in investing activities                                                        (697,159    )                       (414,573  )       
   Cash flows from financing activities                                                                                                               
   Issuance of common units                                                                     370,234                             99,443            
   Distributions                                                                                (132,420    )                       (102,686  )       
   Proceeds from issuance of long-term debt, net                                                1,502,885                           661,500           
   Repayments of long-term debt                                                                 (1,223,000  )                       (369,500  )       
   Change in book overdraft                                                                     (3,176      )                       2,636             
   Debt issuance costs                                                                          (9,967      )                       (3,665    )       
   Net cash provided by financing activities                                                    504,556                             287,728           
   Increase (decrease) in cash                                                                  (821        )                       1,698             
   Cash beginning of period                                                                     5,328                               3,630             
   Cash end of period                                                                   $       4,507                       $       5,328             


BBEP-IR

BreitBurn Energy Partners L.P.
Investor Relations Contacts:
James G. Jackson
Executive Vice President and Chief Financial Officer
213-225-5900 x273
or
Jessica Tang, Investor Relations
213-225-5900 x210 

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