Breitburn Energy Partners acquires QR Energy

Breitburn Energy Partners acquires QR Energy

Breitburn Energy Partners acquires QR Energy

Los Angeles’ Breitburn Energy Partners acquires QR Eenrgy from Huston for $1.67 Billion in cash and stock deal. Under the terms of the deal QR Energy’s holders will receive about 72 million Breitburn Class B shares.

“We are very pleased to reach this agreement with QR Energy, a company that we have always admired given its enviable MLP-friendly assets and engineering-focused operating strategy that is strikingly similar to our own. This world-class portfolio of conventional properties in large, oil rich basins fits perfectly with our asset base and improves our ability to deliver shallow, predictable decline rates that generate industry-leading margins. The combination offers immediate G&A savings and significant accretion for all unitholders. Even more importantly, our enhanced scale, diversification, and intellectual capital will better position Breitburn to efficiently use its capital to create long-term value for unitholders. We look forward to welcoming QR Energy’s employees into the Breitburn organization.” Halbert S. Washburn, Breitburn’s Chief Executive Officer, said, .

QR Energy unit holders will receive 0.9856 of Breitburn unit for each QR Energy unit, worth about $22.48 a unit, based on Breitburn’s closing price on Wednesday. Class C convertible preferred shares will receive $350 million in cash at closing. Deal includes QR energy’s debt and Class C convertible preferred units, this deal is valued $3 Billion.

“We consider Breitburn an ideal merger partner,” said Alan L. Smith, QR Energy’s Chief Executive Officer, “and believe this combination creates an unrivaled operator of mature assets with exposure to nearly every conventional basin in the United States.” Mr. Smith added

Breitburn’s advisor is UBS AG while Royal Bank of Canada’s capital markets unit and Greenhill & Co. advised QR energy.

Mr. Stakebay says:

This move will make the largest upstream master limited partnership focused on oil and generate greater cash flow and increase unit holder value.

 

CEO of Breitburn Energy ……….. Halbert S. Washburn ……(2010-present)……… $ 6 053 502 (2013)

CEO of QR Energy ……………………Alan L. Smith………… (2009-present) ………..$ 720 899 (2013)

BREITBURN ENERGY

QR ENERGY
Revenue

$ 634.65 million (2013)

$ 446.8 million (2013)

Operating income

$ 44.28 million (2013)

$ 108.9 million (2013)

Profit

$ – 43.67 million (2013)

$ 61. 62 million (2013)

Total assets

$ 4.196 billion (2013)

$ 1.815 billion (2013)

Total Equity

$ 1.989 billion (2013)

$ 637. 45 million (2013)

Employees

563 (2013)

355(2013)

 

 

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