BPT has struggled on many fronts in 2024, with the share price already down 28% year-to-date. In August, they delivered a major downgrade to reserves at its Enterprise natural gas field by a whopping 34%. From an operational perspective, we don’t like how they announced this downgrade in August after pre-announcing adjustments/downgrades less than three months previously. It highlights the complexity of their asset base, something we have consistently highlighted with respect to BPT.
The stock may be capable of a 5-10% bounce, but a test of $1 wouldn’t surprise; at this stage, it’s not a quality business that MM wants to own.
- We see no reason to consider BPT over WDS and STO until further notice.
MM is neutral towards BPT
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