Why BreitBurn Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, upstream MLP BreitBurn Energy Partners has earned a coveted five-star ranking.

With that in mind, let's take a closer look at BreitBurn and see what CAPS investors are saying about the stock right now.

BreitBurnfacts

Headquarters (founded)

Los Angeles (2006)

Market Cap

$2.0 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$416.7 million

Management

CEO Halbert Washburn

COO Mark Pease

Return on Equity (average, past 3 years)

2.9%

Cash/Debt

$4.5 million / $1.1 billion

Dividend Yield

9.4%

Competitors

Aera Energy

Bill Barrett

DTE Energy


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 527 members who have rated BreitBurn believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, TMFmd19, succinctly summed up BreitBurn bull case for our community:

Taking everything together, the company has enough reserves to secure its current distribution of more than 9% for years to come. The company also has a nice inventory of future organic growth projects as well as the financial flexibly to continue to acquire additional reserves. This has given management the confidence to target a 5% annual distribution increase. When you add it all up, BreitBurn has the solid foundation you want as an income seeking investor.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its perfect five-star rating, BreitBurn may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why BreitBurn Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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