Who better to learn the world of A&D from than Thurmon Andress, managing director of BreitBurn Energy Partners? That is the fortunate position Nik Solich is in as a member of BreitBurn’s seasoned A&D team.

As noted in a “Legends” profile in Oil and Gas Investor in 2008, for decades Andress has been a deal-maker for both public and private E&Ps and partnerships. He knows everyone.

Solich, a native Coloradan, studied finance at the University of Colorado at Boulder and was introduced to the oil and gas business at Denver-based Cordillera Energy Partners by his uncle, George Solich, and Tad Herz. After graduation, Nik moved to Houston to work at EnRisk, and several years later, in 2012, joined BreitBurn. Now he is contributing to BreitBurn’s growth through its acquisitions strategy.

His first year proved to be a busy one at the E&P MLP, which spent over $600 million on acquisitions in 2012 and today has record production greater than 26,000 barrels of oil equivalent per day, up 18% over the prior year.

Solich is helping to source and evaluate deals, and plan for new growth regions.

In addition to community and industry activities, Solich is a co-founder of a Denver-based organization of about 100 young energy professionals, the Energy Working Group. It meets quarterly. In a recent interview, Solich discussed BreitBurn’s strategy and his role with the firm.

Investor BreitBurn had an active 2012.

Solich Yes. We screened close to 500 deals and closed seven, adding proved reserves greater than 34 million barrels of oil equivalent.

We’re proud that five of those transactions were in the Permian Basin, primarily the Wolfberry trend. It marks our entry into the basin. We plan to drill approximately 60 wells there and run two to three rigs continuously for the year. To get the metrics that we did is very positive, and that area is going to continue to be a key focus for us.

Investor Where else might BreitBurn seek entry going forward?

Solich As we think about where to grow, we will be asset-driven, and not necessarily geographic-driven. We are always looking for bolt-on opportunities, whether in Wyoming, California or the Permian. We don’t have a position in the Midcontinent, and would love to be there, because of the MLP-type assets. To a large degree, we have to look to buy greater than 50% proved developed producing properties, if possible. We’re looking at projects with larger drilling components or secondary-recovery type opportunities. Even though we prefer operating, we are open to joint venture deals, if it helps the company to access a new basin entry more quickly.

It comes down to what we’re capable of absorbing, operationally and financially. This will change over time. Right now, we pursue deals in the range of 500 to 5,000 barrels of oil equivalent per day, from $100 million to $500 million. We expect to have a robust acquisition year in 2013, and our guidance has been announced.

Investor What about oil versus gas deals?

Solich Our daily hydrocarbon balance is about 53% oil and 47% gas. Some 30% of our production is expected to be sold on Brent pricing. We’re fairly balanced on reserves, and have plenty of uneconomic gas locations at current prices. That’s driving our desire to be more oily.

We buy long-life, low-decline properties and we’ll continue to target assets more than companies. We try to source new projects directly, and our track record demonstrates that.

We also try to inspire one-on-one deals, and people recognize our skill set as being able to pay for value and run the acquisition process fairly and efficiently.

Investor Will competition for deals continue to be fierce?

Solich Quality conventional assets will remain highly coveted. The majors and large independents are going to continue to reassess conventional portfolios to fund capital-intensive shale drilling. When we think about unconventional plays that might some day be suitable for an MLP, the Bakken is approaching that point in the decline curve, for steady, flat production. The Eagle Ford is probably not there yet, we can’t absorb that rate of decline.

Close to $80 billion in E&P onshore, corporate and assets deals were closed in 2012. We’re excited to be in the mix.

Investor What is one of the attractions of working in A&D?

Solich Interacting with such a diverse group of people and projects is fun. We’re helping drive the growth of our company.

Investor What’s one of the things you’ve learned from Andress?

Solich Take care of your friends and be honest. We’re fortunate to be in this business.