Los Angeles-based Breitburn Energy Partners agreed to acquire QR Energy of Houston in a deal the companies said would create the largest oil-weighted upstream oil and gas master limited partnership (MLP). The transaction is valued at $3 billion, including QR Energy’s existing net debt. The combined company would have current average daily production of 57,300 barrels of oil equivalent and a pro forma enterprise value of $7.8 billion, based on second quarter results. Both companies are focused on acquiring, developing and producing onshore oil and gas assets in the U.S.
“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,” said Halbert S. Washburn, CEO of Breitburn.
QR Energy CEO Alan L. Smith said the combination creates “an unrivaled operator of mature assets with exposure to nearly every conventional basin in the United States.”
Breitburn’s management team will run the combined company and will employ all of QR Energy’s engineering, operations and support staff.
SEE ALSO: Whiting petroleum to become top Bakken producer with Kodiak buy
