QR Energy LP — Merger or Acquisition (July 2014)
13 slides from QR Energy LP's merger presentation, Jul 24, 2014
Slide 1: $7.8 Billion Merger Forming the Largest Oil-Weighted Upstream MLP
NASDAQ: BBEP $7.8 BILLION MERGER FORMING THE LARGEST OIL - WEIGHTED UPSTREAM MLP BREITBURN ENERGY PARTNERS LP & QR ENERGY LP JULY 24, 2014
Slide 2: Additional Information About the Proposed Transactions and Where to Find It
pg. 2 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 re
Slide 3: Participants in the Solicitation
pg. 3 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 is
Slide 4: Forward-Looking Statements
pg. 4 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,” “guidance,” “expansion,” “opportunities,” “target,” “estimated,” “future,” “believe,
Slide 5: Transaction Overview
CONSIDERATION pg. 5 • 0.9856 of a BBEP unit for each unit of QRE (includes Common and Class B Units) – Subject to maximum of approximately 72mm total BBEP units issued • QRE Class C Convertible Preferred units redeemed for cash at $350 million face value TRANSACTION OVERVIEW TRANSACTION METRICS • ~$
Slide 6: Excellent Strategic Fit and Strong Credit Profile
STRONG CREDIT PROFILE EXCELLENT STRATEGIC FIT pg. 6 • Complementary asset profiles • Predominantly operated, high working interest properties • Similar engineering - centric operating focus STRATEGIC RATIONALE • High margin oil - weighted properties (67% liquids) (1) • Over 15 - year proved reserve
Slide 7: Transaction Is Attractive to Both Parties
pg. 7 TRANSACTION IS ATTRACTIVE TO BOTH PARTIES FURTHER DIVERSIFIED ASSET BASE WITH LOW DECLINE, OIL WEIGHTED PROPERTIES • Combined estimated proved reserve base will be 66% liquids (1) • Breitburn will gain entry into Texas/Arkansas/Louisiana and Jay Field in Florida IMMEDIATELY ACCRETIVE ACQUISITI
Slide 8: Combination of Growing Businesses
pg. 8 COMBINATION OF GROWING BUSINESSES Estimated Proved Reserves (2) Average Daily Production (3) 30.4 75.2 99.1 109.1 118.9 151.1 149.4 214.3 - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 2010 2011 2012 2013 QR Energy Breitburn 226.3 248.5 323.4 (Mmboe) 149.3 13.9 16.7 17.9 20.3 22.9 26.4 34.0 37.1 -
Slide 9: Significantly Enhances Scale vs. Peers
pg. 9 SIGNIFICANTLY ENHANCES SCALE VS. PEERS $ 22.0 323.4 298.8 262.3 214.3 198.6 180.0 142.6 109.1 57.7 30.1 20.6 15.5 - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 Peer 1 PF Breitburn Peer 2 Peer 3 Breitburn Peer 4 Peer 5 Peer 6 QR Energy Peer 7 Peer 8 Peer 9 Peer 10 (Mmboe) 1,405.7 Enterprise
Slide 10: Asset Overview by Region
California 2013 Avg. Daily Production 4,645 Boe/d Est. Proved Reserves 23.3 M m b oe Proved Reserve Life ~14 years Texas 2013 Avg. Daily Production 3,899 Boe/d Est. Proved Reserves 40.9 M m b oe Proved Reserve Life ~29 years Oklahoma/New Mexico 2013 Avg. Daily Production 7,204 Boe/d Est. Proved Rese
Slide 11: Enhanced Diversification with Optimization Opportunities
pg. 11 AVERAGE DAILY PRODUCTION (1) ENHANCED DIVERSIFICATION WITH OPTIMIZATION OPPORTUNITIES ESTIMATED PROVED RESERVES (2) Michigan, 25.9% Wyoming, 20.6% California, 13.7% Indiana / Kentucky, 1.7% Oklahoma & New Mexico, 21.2% Texas, 11.5% Florida, 5.4% Michigan, 0.5% Mid - Continent, 7.7% Permian Ba
Slide 12: Largest Oil-Weighted Upstream MLP
pg. 12 LARGEST OIL - WEIGHTED UPSTREAM MLP Oil, 53% NGL, 7% Gas, 40% Oil, 67% NGL, 10% Gas, 23% Oil, 58% NGL, 8% Gas, 34% Breitburn QR Energy Combined RESERVE MIX (1) Source: Company investor presentations (1) Based on BBEP and QRE estimated proved reserves as of 12/31/13
Slide 13: $7.8 Billion Merger Forming the Largest Oil-Weighted Upstream MLP
NASDAQ: BBEP $7.8 BILLION MERGER FORMING THE LARGEST OIL - WEIGHTED UPSTREAM MLP BREITBURN ENERGY PARTNERS LP & QR ENERGY LP JULY 24, 2014