Last week BreitBurn Energy Partners (BBEP) announced what will almost certainly be its biggest transaction of 2014: The acquisition of QR Energy (NYSE:QRE), for a total of $1.46 billion. This acquisition was an all-stock deal, and unit holders of QR will receive 0.985 shares of BreitBurn for each one share of QR. The combined partnership will have an enterprise value of $7.8 billion, second only to Linn Energy (LINE) among upstream MLPs.
BreitBurn's acquisition of another upstream MLP represents a deviation from the usual strategy of picking up acreage parcels individually, and often from corporations. This article looks to do two things: First, it will look at the pros and cons of the transaction from the vantage point...
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