Expect These If You Are A MLP Investor
Apparently, investors in BreitBurn Energy Partners didn't like the idea that the company will issue about 16 million common units this week, because the immediate reaction from the market was quite negative. If you are an investor in Breitburn or another MLP exploration and production company like LINN Energy or Vanguard Natural Resources , you need to know something: MLPs have to issue shares from time to time, and selling off shares because of an equity issuance is not the best reason to sell a company.
The reason that MLPs like LINN and Breitburn have to issue shares to raise capital is because of the inherent structure of an MLP. Tune into the video below to find out why this is necessary and how it affects the distribution.
Besides, we all know you are into LINN and BreitBurn for the distribution
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The article Expect These If You Are A MLP Investor originally appeared on Fool.com.Fool contributor Tyler Crowe owns shares of LINN Energy. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter @TylerCroweFool. The Motley Fool recommends BreitBurn Energy Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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