- Tesoro Logistics has announced it will buy QEP Resources' midstream assets for $2.5 billion.
- The MLP will tap the debt and equity markets to fund the transaction.
- Current unitholders will get a 45% haircut to achieve sub-30% growth in DCF and adjusted EBITDA.
- Despite being down 10% this morning, this deal is not a compelling reason to invest in TLLP.
- Investors might be better served by looking at QEP Resources: QEP has a $4.4 mkt cap and will receive $2.5 billion in cold hard cash.