Casey Hoerth
Long only, long-term horizon, growth at reasonable price, dividend investing

BreitBurn's Acquisition More Evidence Buyer's Market Is Ending

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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