QR Energy LP — Merger or Acquisition (August 2014)
19 slides from QR Energy LP's merger presentation, Aug 6, 2014
Slide 1: Presentation to QR Energy Employees
NASDAQ: BBEP PRESENTATION TO QR ENERGY EMPLOYEES BREITBURN ENERGY PARTNERS LP AUGUST 2014
Slide 2: Introduction to Breitburn: Today's Agenda
pg. 2 • Who are we? • What is our strategy? • Where and how do we operate? • How are we organized? • What can you expect from us? INTRODUCTION TO BREITBURN Today’s Agenda Speakers • Jim Jackson – Chief Financial Officer & Executive Vice President • Dave Baker – Senior Vice President BBEP Operations
Slide 3: A History of Breitburn Energy (1988-2014)
pg. 3 A HISTORY OF BREITBURN ENERGY (1988 - 2014) 1988 - 1992 : Smaller acquisitions funded with money raised from wealthy individuals in Limited Partnerships 2006 : Breitburn divided into two companies: Breitburn Energy Company L.P. (now Pacific Coast Energy Company LP) and Breitburn Energy Partner
Slide 4: A History of Breitburn Energy (continued)
November 1, 2007 : Completed Quicksilver acquisition – expanded to Michigan, Indiana and Kentucky ($1,474mm, 88.3 MMBoe) May 17, 2007 : Announced acquisition in Florida’s Sunniland Trend ($100mm, 9.5 MMBoe) June 17, 2008 : Announced repurchase of Provident’s interests in BreitBurn ($345mm) May 25, 2
Slide 5: A History of Breitburn Energy (cont'd)
2013: BBEP celebrated 25 years of experience with the NASDAQ closing bell ceremony on May 21, 2013 November 6, 2013 : Announced the conversion to a monthly distribution payment policy from a quarterly distribution policy beginning in January 2014 December 13, 2013 : Announced the acquisition of addi
Slide 6: Breitburn: Key Investment Considerations
STRONG HEDGE BOOK & FINANCIAL FLEXIBILITY COMMITTED TO DISTRIBUTION GROWTH E&P MLP OVER 25 YEARS OF SUCCESSFUL OPERATORSHIP pg. 6 • Predecessor founded in 1988, 2006 IPO • Focus on acquisition, exploitation, development, and production of oil and gas properties • Enterprise value: ~$4.8 billion (1)
Slide 7: Geographically Diversified Asset Base
pg. 7 Breitburn Totals (1) - Est. Proved Reserves: 214.3 MMBoe - Reserve Mix: 53% Oil / 7% NGLs / 40% Gas - Production Mix: 51% Oil / 6% NGLs / 43% Gas - % Proved Developed: 81% - R/P: > 15 years GEOGRAPHIC PRESENCE IN NINE STATES GEOGRAPHICALLY DIVERSIFIED ASSET BASE (1) Based on YE 2013 Reserve Re
Slide 8: Disciplined Acquisition Strategy
• Breitburn acquisition strategy unchanged for 25 years since the founding of its original company • 15 person business development and acquisition evaluation team • Acquire mature oil and gas properties with stable, long - life production and low - risk drilling opportunities • 2013 - $1.2 billion
Slide 9: Successful Operating Plan That Pays
SEQUENTIAL DISTRIBUTION GROWTH • Consistent distribution growth for the past 4 years • 2013 distribution growth of ~4.8% (1) ACCRETIVE ACQUISITIONS • Acquire assets that complement existing portfolio and are accretive to DCF and NAV per unit EFFECTIVE HEDGING STRATEGY • Mitigate commodity price vola
Slide 10: 2014 Capital Program Summary
• 2014 expected capital program between $325 million and $345 million ▪ ~ 92% of total capital planned for oil projects in Texas, California, Oklahoma and CO 2 supply / infrastructure ▪ ~ 85% of total capital planned for drilling, rate - generating, and facilities projects designed to increase produ
Slide 11: Current Executive Management Organization
pg. 11 CURRENT EXECUTIVE MANAGEMENT ORGANIZATION Halbert Washburn, Chief Executive Officer-BBEP Randall Breitenbach, Chief Executive Officer-PCEC Jackson Washburn Sr. VP Bsns. Dev. & Pres Breitburn Land Co. Greg Brown Exec VP, Gen Counsel & Chief Administrative Officer Jim Jackson Chief Financial Of
Slide 12: Current Operations Organization
pg. 12 CURRENT OPERATIONS ORGANIZATION Tom Thurmond Vice President Operations Support Dave Baker Senior Vice President BBEP Operations Mark Pease President & Chief Operating Officer Dick Hart Vice President PCEC Operations
Slide 13: Current CFO Organization
pg. 13 CURRENT CFO ORGANIZATION Kevin Mitchell Vice President Internal Audit Bruce McFarland Treasurer & Vice President John Gillespie Vice President Human Resources Elaine Patterson Organization & Leadership Advisor Nikhil Vasa Corporate Finance Manager Larry Smith VP, Chief Accounting Officer & Co
Slide 14: Current Benefits Overview
pg. 14 CURRENT BENEFITS OVERVIEW Breitburn Energy Medical Anthem Blue Cross PPO Dental Delta Dental PPO Vision Vision Service Plan (VSP) PPO Life Insurance Basic Life/AD&D Supplemental Employee Life Supplemental Spouse Life Supplemental Child Life Supplemental Individual/Family AD&D Business Travel
Slide 15: Anticipated Next Steps
pg. 15 ANTICIPATED NEXT STEPS » Team reviews and integration planning ongoing » Breitburn operating management and HR to provide additional information about employment • Compensation: base pay and bonus plans • Benefits: comprehensive package of medical, dental, vision, life, disability, vacation,
Slide 16: Additional Information About the Proposed Transactions
pg. 16 In connection with the proposed transactions, Breitburn intends to file with the SEC a registration statement on Form S - 4 that will include a prospectus of Breitburn and a proxy statement of QR Energy. Each of Breitburn and QR Energy also plan to file other relevant documents with the SEC r
Slide 17: Participants in the Solicitation
pg. 17 Breitburn and QR Energy and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transactions. Information about Breitburn’s directors and executive officers i
Slide 18: Forward-Looking Statements
pg. 18 This presentation contains statements that Breitburn believe to be “forward - looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Words and phrases such as “expected,” “ expansion,” “opportunities,” “target ,” “ future,” “believe,” “will be” and varia
Slide 19: Presentation to QR Energy Employees
NASDAQ: BBEP PRESENTATION TO QR ENERGY EMPLOYEES BREITBURN ENERGY PARTNERS LP AUGUST 2014