When was BreitBurn Energy Partners' initial public offering (IPO)?
BreitBurn Energy Partners L.P. completed its initial public offering (IPO) as a master limited partnership (MLP) on October 10, 2006. The IPO was for 6,000,000 common units representing limited partner interests in the partnership at a price of $18.50 per common unit. The partnership is listed on the Nasdaq Global Select Market where it trades under the symbol "BBEP".
What is a master limited partnership (MLP)?
A master limited partnership, or MLP, is a limited partnership. Units that are traded on public stock exchanges represent the investor's limited partner ownership interest in the MLP and the investor is called a unitholder. In addition to the limited partners, which provide capital to the partnership but have no role in its management, an MLP has one or more general partners that manage the partnership. BBEP's general partner is BreitBurn GP, LLC.
What is the difference between an investment in units of a publicly traded MLP and stock in a corporation?
A limited partner in an MLP such as BreitBurn Energy Partners L.P. owns units of the partnership instead of shares of stock in a corporation. Partners in an MLP receive cash distributions rather than dividends. Unlike a corporation, partnerships are generally not subject to federal and state income tax. Instead, all income, gains, losses and deductions of the partnership pass through to its unitholders who are, in turn, required to report their share of those items on their individual tax returns, as though the unitholder had incurred these items directly.
What is the difference between a distribution and a dividend?
A distribution is paid by a partnership to its partners, which is generally tax-deferred. A dividend is paid by a corporation to its stockholders and is generally taxable in the year it is received. The taxable income you are allocated as a unitholder may not be equal to the cash distributions that you receive because your share of taxable income as a unitholder includes noncash expenses such as depreciation and depletion, while the cash distributions you receive reflect the cash flow generating ability of the partnership's assets.
How often are distributions paid?
Distributions are paid approximately 45 days after each quarter end. To illustrate,
For December, payment is on or before February 15
For March, payment is on or before May 15
For June, payment is on or before August 15
For September, payment is made on or before November 15
In order to receive a particular quarter's cash distribution, you must own the units as of the record date established by the partnership. BBEP will announce in a timely manner the record date and payment dates of its quarterly cash distributions through a broadly disseminated press release and via its website.
How are the distributions reported for tax purposes?
Unlike a stock dividend, the cash distributions from the partnership are not reported on your income tax return. Instead, you are taxed on your share of partnership taxable income, which will be provided to all unitholders on Schedule K-1 annually.
Can I own units in my individual retirement account (IRA) or pension or profit sharing plan?
We strongly recommend that you consult a tax advisor regarding the tax ramifications of MLP ownership but, in general, you can own MLP units in an IRA, pension or profit sharing plan subject to the following caveat: Only the first $1,000 of net Unrelated Business Taxable Income, or UBTI, from all sources is excluded from taxation. In other words, to the extent that the IRA or plan has more than $1,000 in aggregate UBTI, the excess would be taxable even though the units are held in a tax-exempt account. There is a reporting obligation if gross UBTI exceeds $1,000. Virtually all of our income will be UBTI.
What is UBTI?
Unrelated Business Taxable Income, or UBTI, is income that is taxable to an otherwise tax-exempt institution or account. UBTI usually comes into play for individual investors when they consider holding MLP units in nontaxable accounts such as IRAs, pension or profit sharing plans. Virtually all of a unitholders' share of our income will be UBTI.
As an investor, whom do I contact if I need to change my mailing address, replace a lost or stolen stock certificate, reissue a stock certificate in another name and/or locate cash distributions paid but not received on units?
If the BBEP units are owned through a financial intermediary such as a bank or broker, please notify directly your financial representative at the institution where your account is held.
If your BBEP units are held in your own name in certificated form, please contact our transfer agent, American Stock Transfer and Trust Company either by phone at 800-937-5449 or by mail at American Stock Transfer and Trust Company, 6201 15th Avenue, Brooklyn, New York 11219.
Can I purchase units directly from BreitBurn Energy Partners?
No. At this time, we do not offer a direct purchase plan. You may purchase units through your financial representative, such as your bank or broker.
Does BreitBurn Energy Partners have a Distribution Reinvestment Plan (DRIP)?
No. At this time, we do not offer a distribution reinvestment plan.
Who serves as BreitBurn Energy Partners' independent auditors?
PricewaterhouseCoopers LLP.
Do you have another question that hasn't been answered?
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