Quick Win by the Algorithm: Breitburn Energy Partners LP (BBEP)
Quick Win by the Algorithm
Breitburn Energy Partners LP.
On May 13th, 2016, The I Know First algorithm gave a bullish signal of -178.76 for the ticker BBEP, which had a predictability indicator of 0.16 In accordance with the algorithm’s prediction, BBEP tumbled 71.89% in the following three days.
Breitburn Energy Partners LP is an independent oil and gas partnership focused on the acquisition, exploitation and development of oil, natural gas liquid (NGL) and natural gas properties in the United States.
On Sunday May 15th, BreitBurn Energy Partners filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. This move comes as the partnership’s grace period for an interest payment relating to two separate senior notes was expiring and the firm was obviously unable to meet these obligations.
BreitBurn Energy Partners has entered into a new phase with an uncertain future and it is unclear what steps the partnership will take to attempt to meet its obligation to its creditors. A large portion of its assets are tied up in oil & gas properties and equipment and BreitBurn Energy Partners would likely have issues selling such a large amount of these assets in the current market at a fair price.
