LOS ANGELES--(BUSINESS WIRE)--BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP), today announced financial and operating results for its second quarter of 2008 and the filing of its Form 10-Q with the Securities and Exchange Commission.

Hal Washburn, Chairman and Co-CEO of BreitBurn Energy Partners, said, “We are pleased to deliver another excellent quarter, which capitalized on our acquisitions completed last year. We are reaffirming our guidance given on March 17, and June 17, 2008 and expect our significant portfolio of low-risk development opportunities to drive growth in the Partnership’s production to the mid- to high single digits per year without acquisitions.”

Washburn continued, “The July 30, 2008 announcement of the transaction involving the acquisition of Provident’s interests in BreitBurn Energy Company (“BEC”), which is scheduled to close this month, was excellent news for everyone involved in the operation and support of BBEP and BEC. This management team has been managing the BEC properties for a number of years, together with the BBEP properties, allowing us to share resources and the expertise of our outstanding team. With the pending acquisition by a management-led private equity group of Provident’s interests in BEC and the resulting maintenance of common management, we believe that this sharing of resources and expertise will continue without any significant negative impact on our G&A expense or our employees. We are excited about the future of both BBEP and BEC and are very happy that we can concentrate on managing the assets of both companies as we always have, focusing on maximizing their current and future value.”

The following table presents production, income statement and realized price information for Q2 and Q1 2008 and Q2 2007:

	Three Months Ended
	June 30,			March 31,			June 30,
		2008			2008			2007
Oil, natural gas and natural gas liquid sales	$	139,962		$	115,849		$	32,413
Realized gains (losses) on commodity derivative instruments		(33,334	)		(13,438	)		822
Unrealized losses on commodity derivative instruments		(319,948	)		(69,949	)		(8,373	)
Other revenues, net		643			875			237
Total revenues	$	(212,677	)	$	33,337		$	25,099
Lease operating expenses		26,094			23,104			8,914
Production and property taxes		8,499			8,064			1,797
Processing fees		1,392			862			-
Total lease operating expenses	$	35,985		$	32,030		$	10,711
Lease operating expenses pre taxes per Boe	$	16.06		$	13.93		$	16.63
Production and property taxes per Boe		4.97			4.69			3.35
Total lease operating expenses per Boe		21.03			18.62			19.98
General and administrative expenses excl unit-based compensation exp	$	9,562		$	10,057		$	2,811
Net loss (a,b)	$	(286,240	)	$	(41,140	)	$	(1,068	)
Net loss per limited partnership unit (a,b)	$	(4.39	)	$	(0.61	)	$	(0.04	)

Total Production (MBoe)		1,711			1,720			536
Oil and NGL (MBoe)		766			783			525
Natural gas (MMcf)		5,666			5,624			66
Average daily production (Boe/d)		18,802			18,901			5,889

Sales volumes (MBoe)		1,674			1,767			587
Average realized sales price (per Boe) (b)	$	62.96		$	57.01		$	55.80
Oil and NGL (per Boe) (b)		77.75			67.93			56.31
Natural gas (per Mcf) (b)		8.58			7.94			4.88
(a) Includes non-cash unrealized gains (losses) on derivative instruments
(b) Includes realized gains (losses) on derivative instruments

This press release, the financial tables and other supplemental information, including the reconciliations of certain non-generally accepted accounting principles ("non-GAAP") measures to their nearest comparable generally accepted accounting principles ("GAAP") measures, may be used periodically by management when discussing the Partnership's financial results with investors and analysts and they are also available on the Partnership's website under the Investor Relations tab.

Among the non-GAAP financial measures used are "Adjusted EBITDA,” “distributable cash flow” and “Adjusted net income excluding the effect of derivatives on our oil, natural gas and natural gas liquid sales”. These non-GAAP financial measures should not be considered as an alternative to GAAP measures, such as net income, operating income, cash flow from operating activities or any other GAAP measure of liquidity or financial performance.

Adjusted EBITDA, Adjusted net income excluding the effect of derivatives on our oil, natural gas and natural gas liquid sales, and distributable cash flow are presented as management believes they provide additional information and metrics relative to the performance of the Partnership's business, such as the cash distributions we expect to pay to our unitholders, as well as our ability to meet our debt covenant compliance tests. Management believes that these financial measures indicate to investors whether or not cash flow is being generated at a level that can sustain or support an increase in our quarterly distribution rates. Adjusted EBITDA, Adjusted net income excluding the effect of derivatives on our oil, natural gas and natural gas liquid sales, and distributable cash flow may not be comparable to similarly titled measures of other publicly traded partnerships or limited liability companies because all companies may not calculate Adjusted EBITDA, Adjusted net income excluding the effect of derivatives on our oil, natural gas and natural gas liquid sales, and distributable cash flow in the same manner.

The following table presents a reconciliation of Adjusted EBITDA to net income (loss) and net cash flow from operating activities, our most directly comparable GAAP financial performance and liquidity measures, for each of the periods indicated. It also presents distributable cash flow.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Thousands of dollars	2008		2007		2008		2007

Reconciliation of consolidated net loss to Adjusted EBITDA:
Net loss	$ (286,240	)	$ (1,068	)	$ (327,380	)	$ (5,824	)
Unrealized loss on commodity derivative instruments	319,948		8,373		389,897		18,069
Depletion, depreciation and amortization expense	21,890		4,511		42,751		7,598
Interest expense and other financing costs	4,982		603		11,521		1,101
Income tax provision	(1,091	)	(215	)	(1,337	)	(312	)
Non-cash unit based compensation	1,973		-		3,450		-
Amortization of intangibles	519		-		1,038		-
Sales contract amortization	273		-		508		-

Adjusted EBITDA	$ 62,254		$ 12,204		$ 120,448		$ 20,632


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Thousands of dollars	2008		2007		2008		2007

Reconciliation of net cash from operating activities to Adjusted EBITDA:
Net cash from operating activities	$ 40,321		$ 13,568		$ 134,635		$ 26,989
Add:
Increase (decrease) in assets net of liabilities
relating to operating activities	13,353		1,642		(28,884	)	(3,795	)
Cash interest expense (including realized losses on interest rate swaps)	5,543		679		10,912		794
Equity earnings from affiliates, net	261		12		484		94
Incentive compensation expense (a)	(130	)	(4,020	)	(1,274	)	(7,566	)
Incentive compensation plans paid	3,131		(52	)	5,340		3,677
Minority interest	(70	)	(10	)	(124	)	(10	)
Other	(155	)	385		(641	)	449

Adjusted EBITDA	$ 62,254		$ 12,204		$ 120,448		$ 20,632


Cash interest expense and other financing costs	(5,543	)	(679	)	(10,912	)	(794	)
Maintenance capital expenditures	(14,995	)	(5,034	)	(28,505	)	(6,595	)

Distributable cash flow	$ 41,716		$ 6,491		$ 81,031		$ 13,243

(a) Represents incentive compensation plan expense expected to be settled in cash.

The table below summarizes the Partnership’s derivative hedge portfolio as of June 30, 2008.

	Year		Year		Year		Year		Year
		2008		2009		2010		2011		2012
Gas Positions:
Fixed Price Swaps:
Hedged Volume (MMBtu/d)		48,129		45,802		43,869		25,955		19,129
Average Price ($/MMBtu)	$	8.08	$	8.14	$	8.20	$	9.21	$	10.12
Collars:
Hedged Volume (MMBtu/d)		731		1,740		3,405		16,016		19,129
Average Floor Price ($/MMBtu)	$	9.00	$	9.00	$	9.00	$	9.00	$	9.00
Average Ceiling Price ($/MMBtu)	$	20.00	$	16.36	$	12.79	$	11.28	$	11.89
Total:
Hedged Volume (MMMBtu/d)		48,860		47,542		47,275		41,971		38,257
Average Price ($/MMBtu)	$	8.10	$	8.17	$	8.26	$	9.13	$	9.56

Oil Positions:
Fixed Price Swaps:
Hedged Volume (MBbls/d)		2,107		1,838		2,308		2,116		1,939
Average Price ($/Bbl)	$	79.12	$	75.51	$	83.12	$	88.26	$	90.00
Participating Swaps: ^(a)
Hedged Volume (MBbls/d)		2,925		2,847		1,743		2,439		-
Average Price ($/Bbl)	$	60.85	$	62.86	$	63.60	$	107.71	$	-
Average Part. %		59.1%		57.1%		58.1%		56.0%		-
Collars:
Hedged Volume (MBbls/d)		239		594		1,279		1,125		3,077
Average Floor Price ($/Bbl)	$	110.00	$	92.95	$	102.84	$	102.13	$	110.00
Average Ceiling Price ($/Bbl)	$	146.90	$	123.84	$	136.16	$	134.64	$	145.39
Floors:
Hedged Volume (MBbls/d)		500		500		500		-		-
Average Floor Price ($/Bbl)	$	107.50	$	100.00	$	100.00	$	-	$	-
Total:
Hedged Volume (MBbls/d)		5,771		5,778		5,829		5,679		5,016
Average Price ($/Bbl)	$	73.60	$	71.01	$	83.06	$	99.36	$	102.27

As announced on August 1, 2008, the Partnership will host an investor conference call to discuss its results today at 2:00 p.m. (Pacific Time). Investors may access the conference call over the Internet via the Investor Relations tab of the Partnership's website (www.breitburn.com), or via telephone by dialing 888-218-8170 (international callers dial +1-913-312-1270) a few minutes prior to register. Those listening via the Internet should go to the site 15 minutes early to register, download and install any necessary audio software. In addition, a replay of the call will be available through August 18, 2008 by dialing 888-203-1112 (international callers dial +1-719-457-0820) and entering replay PIN 7461812, or by going to the Investor Relations tab of the Partnership's website (www.breitburn.com). The Partnership will take live questions from securities analysts and institutional portfolio managers; the complete call is open to all other interested parties on a listen-only basis.

BreitBurn Energy Partners L.P. is a publicly traded independent oil and gas limited partnership focused on the acquisition, exploitation, development and production of oil and gas properties. The Partnership’s producing and non-producing crude oil and natural gas reserves are located in the Antrim Shale in Michigan, the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Sunniland Trend in Florida, the New Albany Shale in Indiana and Kentucky, and the Permian Basin in West Texas. See www.BreitBurn.com for more information.

This press release contains forward-looking statements relating to BreitBurn's operations that are based on management's current expectations, estimates and projections about its operations. Words such as "anticipates," "expects," "intends," "plans," "believes," "estimates," "recommends," “future,” “impact,” “guidance” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, BreitBurn undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: inaccuracies in the estimated timing and amount of future production of oil and natural gas due to numerous factors including permit delays or restrictions, weather, equipment failures, delays or lack of availability, unexpected subsurface or geologic conditions, lack of capital, increases in the costs of rented or contracted equipment, increases in labor costs, volumes of oil or gas greater or lesser than anticipated, and changes in applicable regulations and laws; unexpected problems with wells or other equipment, particularly in our Florida properties where production is concentrated in relatively few wells; the lack of availability of drilling and production equipment or unexpected increases in the cost of such equipment; unexpected changes in operating costs and other expenses, including utilities, labor, transportation, well and oil field services, taxes, permit fees, regulatory compliance, and other costs of operation; the potential for oil and gas operating costs to increase while corresponding sales prices of oil and gas are wholly or partially fixed due to our use of derivative contracts, or "hedges" to limit price volatility; the potential impact of a change in ownership of BreitBurn Energy Company L.P.; changes in crude oil and natural gas prices, including price discounts and basis differentials; management changing its recommendation or the Board not accepting such a recommendation regarding distributions after reviewing all relevant factors the competitiveness of alternate energy sources or product substitutes; technological developments; the future performance of the properties acquired from Quicksilver Resources Inc.; the discovery of previously unknown environmental issues; inaccuracies in estimating the amount, nature and timing of capital expenditures, including future development costs; potential disruption or interruption of BreitBurn's net production due to accidents or severe weather; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule setting bodies; the inability to predict the availability and terms of capital; issues with marketing of oil and natural gas including lack of access to markets, changes in pipeline and transportation tariffs and costs, increases in minimum sales quality standards for oil or natural gas, changes in the supply-demand status of oil or gas in a given market area, and the introduction of increased quantities of oil or natural gas into a given area due to new discoveries or new delivery systems; and the factors set forth under the heading "Risk Factors" incorporated by reference from our Annual Report on Form 10-K for the year ended December 31, 2007, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

BreitBurn Energy Partners L.P. and Subsidiaries
Unaudited Consolidated Statements of Operations


	Three Months Ended						Six Months Ended
	June 30,						June 30,
Thousands of dollars, except per unit amounts		2008			2007			2008			2007

Revenues and other income items:
Oil, natural gas and natural gas liquid sales	$	139,962		$	32,413		$	255,811		$	53,802
Losses on commodity derivative instruments, net		(353,282	)		(7,551	)		(436,669	)		(14,219	)
Other revenue, net		643			237			1,518			478
Total revenues and other income items		(212,677	)		25,099			(179,340	)		40,061
Operating costs and expenses:
Operating costs		34,722			14,604			70,695			23,296
Depletion, depreciation and amortization		21,890			4,511			42,751			7,598
General and administrative expenses		12,978			6,633			23,936			14,136
Total operating costs and expenses		69,590			25,748			137,382			45,030

Operating loss		(282,267	)		(649	)		(316,722	)		(4,969	)

Interest and other financing costs, net		5,124			603			10,548			1,101
(Gain) Loss on interest rate swap		(142	)		-			973			-
Other expenses, net		12			21			350			56

Loss before taxes and minority interest		(287,261	)		(1,273	)		(328,593	)		(6,126	)

Income tax benefit		(1,091	)		(215	)		(1,337	)		(312	)
Minority interest		70			10			124			10

Net loss		(286,240	)		(1,068	)		(327,380	)		(5,824	)

General Partner's interest in net loss		(1,746	)		(16	)		(2,019	)		(111	)

Limited Partners' interest in net loss	$	(284,494	)	$	(1,052	)	$	(325,361	)	$	(5,713	)

Basic net loss per unit	$	(4.39	)	$	(0.04	)	$	(4.94	)	$	(0.24	)
Diluted net loss per unit	$	(4.39	)	$	(0.04	)	$	(4.94	)	$	(0.24	)
Weighted average number of units used to calculate:
Basic net loss per unit		64,807,563			24,816,419			65,914,102			23,396,088
Diluted net loss per unit		64,807,563			24,816,419			65,914,102			23,396,088

BreitBurn Energy Partners L.P. and Subsidiaries
Unaudited Consolidated Balance Sheets


			June 30,			December 31,
Thousands of dollars, except unit amounts				2008			2007
ASSETS
Current assets:
Cash and cash equivalents			$	6,940		$	5,929
Accounts receivable				79,497			44,202
Non-hedging derivative instruments				810			948
Related party receivables				10,820			35,568
Inventory				5,889			5,704
Prepaid expenses				8,025			2,083
Intangibles				3,143			3,169
Other current assets				170			160
		Total current assets		115,294			97,763
Equity investments				16,011			15,645
Property, plant and equipment
Oil and gas properties				1,964,150			1,910,941
Non-oil and gas assets				5,003			568
				1,969,153			1,911,509
Accumulated depletion and depreciation				(88,813	)		(47,022	)
	Net property, plant and equipment			1,880,340			1,864,487
Other long-term assets
	Long-term related party receivables			3,828			-
	Intangibles			1,707			3,228
	Other long-term assets			9,290			5,433

Total assets			$	2,026,470		$	1,986,556
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Accounts payable			$	30,923		$	13,910
Book overdraft				2,914			1,920
Non-hedging derivative instruments				174,739			35,172
Related party payables				1,115			10,137
Revenue distributions payable				30,651			21,266
Derivative settlements payable				13,992			2,775
Accrued liabilities				21,642			5,504
		Total current liabilities		275,976			90,684
Long-term debt				694,000			370,400
Long-term related party payables				-			1,532
Deferred income taxes				1,384			3,074
Asset retirement obligation				28,779			27,819
Non-hedging derivative instruments				318,975			65,695
Other long-term liability				7,367			2,000
		Total liabilities		1,326,481			561,204
Minority interest				568			544
Partners' equity
Limited partners' interests (a)				699,421			1,423,418
General partner interest				-			1,390

Total liabilities and partners' equity			$	2,026,470		$	1,986,556

(a) Limited partner units outstanding				52,635,634			67,020,641

BreitBurn Energy Partners L.P. and Subsidiaries
Unaudited Consolidated Statement of Cash Flows


	Six Months
	Ended June 30,
Thousands of dollars		2008			2007

Cash flows from operating activities
Net income (loss)	$	(327,380	)	$	(5,824	)
Adjustments to reconcile to cash flow from operating activities:
Depletion, depreciation and amortization		42,751			7,598
Unit-based compensation		4,724			7,566
Unrealized loss on derivative instruments		390,505			18,069
Equity in earnings of affiliates, net of dividends		(484	)		(94	)
Deferred income tax		(1,690	)		(540	)
Minority interests		124			10
Amortization of intangibles		1,547			-
Other		994			86
Changes in net assets and liablities:
Accounts receivable and other		(25,609	)		(4,876	)
Inventory		(185	)		2,862
Net change in related party receivables and payables		19,775			(1,335	)
Accounts payable and other current liabilities		29,563			3,467
Net cash provided by operating activities		134,635			26,989
Cash flows from investing activities
Capital expenditures		(44,423	)		(11,250	)
Property acquisitions		(9,988	)		(230,989	)
Net cash used by investing activities		(54,411	)		(242,239	)
Cash flows from financing activities
Issuance of common units		-			222,000
Purchase of common units		(335,033	)		-
Distribution to predecessor members concurrent with initial public offering		-			581
Distributions		(65,269	)		(18,197	)
Proceeds from the issuance of long-term debt		517,600			76,500
Repayments of long-term debt		(194,000	)		(64,500	)
Book overdraft		994			(186	)
Long-term debt issuance costs		(3,505	)		-
Net cash provided (used) by financing activities		(79,213	)		216,198
Increase (decrease) in cash		1,011			948
Cash beginning of period		5,929			93
Cash end of period	$	6,940		$	1,041

CONTACT:
BreitBurn Energy Partners L.P.
Investor Relations
James G. Jackson, 213-225-5900 x273
Executive Vice President and Chief Financial Officer
or
Ruder Finn/West
Investor Relations
Pierre Hirsch, 415-692-3060