Breitburn Energy Partners LP agreed to purchase QR Energy LP for $1.46 billion in a deal to create one of the largest U.S. oil producers structured as a master limited partnership.QR Energy's stock rose as much as 10 percent to $20.85, its highest in nearly two years. Breitburn's shares fell 3 percent.U.S. energy companies have created a number of master limited partnerships (MLP) in recent years because they pay no corporate taxes if they distribute most of their profits to investors. Investors also favor MLPs for their high yields.Breitburn's offer, which represents a 19 percent premium to QR Energy's Wednesday close, is based on 64.9 million outstanding QR Energy shares, the companies said in a joint statement on Thursday.
BreitBurn Energy Partners L.P. is an independent oil and gas partnership focused on the acquisition, exploitation and development of oils and gas properties in the United States. Shares of BBEP fell by 3.11% or $-0.71/share to $22.10. In the past year, the shares have traded as low as $17.10 and as high as $23.15. On average, 550684 shares of BBEP exchange hands on a given day and today's volume is recorded at 1816477.
QR Energy, LP (QR Energy) is engaged in the acquisition, exploitation, development and production of oil and natural gas properties, and the Company?s business activities are conducted through OLLC, its wholly owned subsidiary. Shares of QRE traded higher by 9.01% or $1.7/share to $20.57. In the past year, the shares have traded as low as $16.10 and as high as $19.07. On average, 257433 shares of QRE exchange hands on a given day and today's volume is recorded at 3029098.
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