Breitburn Energy Partners Acquires QR Energy, Elects Donald D. Wolf to Board & Announces Common Unit Distribution Increase & ...
November 20 2014 - 7:00AM
Business Wire
Breitburn Energy Partners LP (NASDAQ:BBEP) announced that it
completed the acquisition of QR Energy, LP on November 19,
2014.
In connection with the acquisition, Breitburn has elected Donald
D. Wolf to its Board of Directors. Mr. Wolf is the former Chairman
and CEO of Westport Resources Corporation and former Chairman of QR
Energy. Mr. Wolf has served as the Chairman of Quantum Resources
since its founding in 2006 and is also on the boards of Aspect
Resources, Enduring Resources, MarkWest Energy Partners and Laredo
Petroleum.
In addition, Breitburn’s Board approved distributions of $0.1733
per common unit for the third month attributable to the third
quarter of 2014, payable on December 12, 2014, to record holders of
its common units at the close of business on December 8, 2014. This
distribution represents a 3.5% increase from the previously
announced distribution on an annualized basis and is equal to a
distribution of $2.08 per common unit on an annualized basis.
Breitburn also announced a cash distribution for its 8.25% Series A
Cumulative Redeemable Perpetual Preferred Units (NASDAQ: BBEPP)
of $0.171875 per Series A Unit, payable on January
15, 2015, to record holders of its Series A Units at the close of
business on December 31, 2014. This monthly distribution is
equal to an annual distribution of $2.0625 per Series A
Unit.
Halbert S. Washburn, Breitburn’s Chief Executive Officer, said:
“We are very excited to have concluded the largest transaction in
Breitburn’s history by acquiring QR Energy. Size and scale matter
in our industry, and with this strategic acquisition Breitburn
becomes the second largest upstream MLP. With production in seven
attractive areas, including the Permian Basin, Ark-La-Tex, the
Midcontinent, the Rockies, Florida, California, and
Michigan/Indiana/Kentucky, we will have the flexibility to
high-grade our capital budget and develop only the best projects.
In summary, our larger and more diverse company will provide better
prospects for delivering long-term value to our unitholders as we
continue to grow our business in the years ahead. I am also very
pleased that Mr. Wolf is joining our Board. Mr. Wolf brings more
than 45 years of industry experience to our Board, and we welcome
him and QR Energy’s employees to Breitburn.”
About Breitburn Energy Partners
LP
Breitburn Energy Partners LP is a publicly traded independent
oil and gas master limited partnership focused on the acquisition,
development, and production of oil and gas properties throughout
the United States. Breitburn’s producing and non-producing crude
oil and natural gas reserves are located in the following seven
producing areas: the Permian Basin, Michigan/Indiana/Kentucky,
Ark-La-Tex, the Midcontinent, the Rockies, Florida, and California.
See www.breitburn.com for more information.
Cautionary Statement Regarding
Forward-Looking Information
This press release contains statements that Breitburn believes
to be “forward-looking statements” within the meaning of Section
21E of the Securities Exchange Act of 1934. All statements other
than historical facts, including, without limitation, statements
regarding the expected benefits of the proposed transaction to
Breitburn and its unitholders, the expected future reserves,
production, financial position, business strategy, revenues,
earnings, costs, capital expenditures and debt levels of the
combined company, and plans and objectives of management for future
operations, are forward-looking statements. When used in this press
release, words such as “may,” “can,” “expect,” “intend,” “plan,”
“estimate,” “anticipate,” “project,” “believe,” “will” or “should”
or the negative thereof or variations thereon or similar
terminology are generally intended to identify forward-looking
statements. It is uncertain whether the events anticipated will
transpire, or if they do occur what impact they will have on the
results of operations and financial condition of Breitburn. Such
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed in, or implied by, such statements.
These risks and uncertainties include, but are not limited to:
Breitburn’s ability to integrate successfully after completion of
the transaction and achieve anticipated benefits from the
transaction; risks relating to any unforeseen liabilities of
Breitburn or QR Energy; declines in oil, NGL or natural gas prices;
the level of success in exploitation, development and production
activities; adverse weather conditions that may negatively impact
development or production activities; the timing of exploitation
and development expenditures; the ability to obtain sufficient
quantities of CO2 necessary to carry out enhanced oil recovery
projects; inaccuracies of reserve estimates or assumptions
underlying them; revisions to reserve estimates as a result of
changes in commodity prices; impacts to financial statements as a
result of impairment write-downs; risks related to level of
indebtedness and periodic redeterminations of the borrowing base
under Breitburn’s credit agreement; ability to generate sufficient
cash flows from operations to meet the internally funded portion of
any capital expenditures budget; ability to obtain external capital
to finance exploitation and development operations and
acquisitions; federal, state and local initiatives and efforts
relating to the regulation of hydraulic fracturing; the ability to
successfully complete potential asset dispositions and the risks
related thereto; the impacts of hedging on results of operations;
failure of properties to yield oil or natural gas in commercially
viable quantities; uninsured or underinsured losses resulting from
oil and natural gas operations; inability to access oil and natural
gas markets due to market conditions or operational impediments;
the impact and costs of compliance with laws and regulations
governing oil and gas operations; ability to replace oil and
natural gas reserves; any loss of senior management or technical
personnel; competition in the oil and natural gas industry; risks
arising out of hedging transactions; and other risks described
under the caption “Risk Factors” in Breitburn’s and QR Energy’s
respective Annual Reports on Form 10-K for the period ended
December 31, 2013. Breitburn assumes no obligation, and disclaims
any duty, to update the forward-looking statements in this press
release to reflect subsequent events or circumstances.
BBEP-IR
Breitburn Energy Partners LPAntonio D'AmicoVice President,
Investor Relations & Government AffairsorJessica TangInvestor
Relations Manager213-225-0390