Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

BreitBurn Energy Partners LP Creates Largest E&P MLP With QR Energy LP Acquisition

|Includes:Breitburn Energy Partners LP (BBEPQ), QRE

On July 24, 2014 Breitburn announced that it will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion, including QR Energy's existing net debt and outstanding Class C Convertible Preferred Units.

Breitburn will become the largest, oil-weighted upstream oil and gas master limited partnership with a pro forma enterprise value of approximately $7.8 billion and current average daily production of approximately 57,300 boe/d, 67% liquids, based on second quarter results.

Deal metrics look a bit high $/boes terms but management expects this acquisition to be accretive.

Click to enlarge

(click to enlarge)Click to enlarge

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: BBEPQ, QRE