Key Developments For BreitBurn Energy Partners L.P
BreitBurn Energy Partners L.P (BBEP.O) (Nasdaq)
Quicksilver Resources Inc. Reports Favorable Rulings On BreitBurn Energy Partners L.P. Lawsuit
Quicksilver Resources Inc. announced that on November 23, 2009 the District Court in Tarrant County, Texas granted Quicksilver's Motion for Partial Summary Judgment and denied the Motion for Partial Summary Judgment filed by BreitBurn Energy Partners L.P. Quicksilver brought suit against BreitBurn and others claiming, among other things, that the BreitBurn Defendants had improperly adopted unilateral changes to the Limited Partnership Agreement which attempted to limit Quicksilver's right to vote for BreitBurn GP, LLC's Board of Directors. Specifically, BreitBurn attempted to place a cap which prevented unitholders from voting their units in excess of 20% of outstanding units even if the unitholders owned a greater percentage. Quicksilver owns 21,347,972 units, representing approximately 40% of the total outstanding units, and is the only unitholder with greater than 20% ownership in the partnership. The Court held that BreitBurn's attempt at the voting cap was invalid and that Quicksilver has the right to vote all of its units for purposes of a quorum and on any action provided for in the Limited Partnership Agreement. The Court further held that the Partnership Agreement requires Directors to determine whether an amendment would adversely affect the Limited Partners in any material respect and that the Directors failed to do so.
BreitBurn Energy Partners L.P. Sees FY 2009 Production At Higher End Of Prior Guidance
BreitBurn Energy Partners L.P. announced that fiscal 2009 total production is trending above the high end of its guidance range.
BreitBurn Energy Partners L.P. Announces Quicksilver Resources Inc. Litigation Update
BreitBurn Energy Partners L.P. announced an update to the Quicksilver Resources Inc. (Quicksilver) litigation and a related amendment to the Limited Partnership Agreement. On October 31, 2008, Quicksilver filed a lawsuit against the Partnership and other persons and entities, including several Directors of the Partnership. One of Quicksilver`s primary claims is that the amendment to the Limited Partnership Agreement, which was adopted by the Board of Directors of the Partnership`s general partner in June of 2008, was not validly adopted. This amendment provides the limited partners with the new right to nominate and elect members of the Board of Directors of the Partnership`s general partner, with two seats on the Board of Directors originally scheduled for election in 2009. As part of its lawsuit, Quicksilver requested a hearing for a temporary injunction seeking to stop the election, among other things. This hearing was originally scheduled in April 2009, but was subsequently taken off the Court`s calendar and the parties agreed with the Court to reschedule a hearing for a permanent injunction on this issue in late September of 2009. Due to ongoing discovery issues, however, the hearing has been postponed from September of 2009 to a currently undetermined future date. The Partnership continues to vigorously defend the lawsuit and believes that the allegations in the lawsuit are without merit.
BreitBurn Energy Partners L.P. Announces Sale Of Non-Core Permian Basin Oil Properties
BreitBurn Energy Partners L.P. announced the sale of the Lazy JL Field located in the Permian Basin of West Texas. The properties were sold to a private buyer for a cash purchase price of $23 million. Proceeds from the transaction, which closed on Friday, July 17, 2009, will be used to reduce borrowings under the Company's credit facility.
BreitBurn Energy Partners L.P. Issues FY 2009 EBITDA Outlook In Line With Analysts' Estimates-Conference Call
BreitBurn Energy Partners L.P. announced that for fiscal 2009, it expects earnings before interest, tax, depreciation and amortization (EBITDA) to be over $180 million. According to Reuters Estimates, analysts were expecting the Company to report EBITDA of $186 million for the same period.
