Apparently, investors in BreitBurn Energy Partners (NASDAQOTH:BBEPQ) 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 (NASDAQOTH:LINEQ) or Vanguard Natural Resources (NASDAQOTH:VNRSQ), 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.
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