Today, I’m adding another master limited partnership (MLP) that does business in the energy patch because of a spot secondary offering that provides a very attractive entry point while sporting a huge yield. 

BreitBurn Energy Partners (NASDAQ:BBEP) offered 10 million shares at $18.51 per share on Thursday, well under Wednesday’s close, while providing a 9.94% yield at its current price of $18.51 per share. The stock has been in a strong uptrend after the company posted earnings well above consensus estimates, announced a substantial increase to its 2012 capital program and raised its quarterly distribution to 46 cents per share.

BBEP is a very straight forward independent MLP 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 Michigan, Wyoming, California, Texas, Florida, Indiana and Kentucky. Production for Q2 rose 18%, with EBITDA increasing 28% from the second quarter of 2011.

During the second quarter, BBEP closed three separate acquisitions: two in the Permian Basin in Texas for $150 million and $70 million, respectively, and another in the Big Horn Basin of Wyoming for $93 million. In addition, the partnership is increasing its capital spending by $50 million for a total of $137 million for 2012 that will target further attractive properties to develop. As such, the partnership raised its outlook for the balance of the year to reflect the positive impact of in the increased capital program.

BreitBurn Energy deploys an extensive hedging strategy to mitigate risks and optimize periods of peak pricing for oil and gas. Given the bullish outlook by management and the large increase in capital spending, I expect further increases in the quarterly distribution to follow in the next several quarters.