This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Acquisition Of QR Energy, LP By Breitburn Energy Partners LP May Not Be In Shareholders' Best Interests

SAN DIEGO & HOUSTON, July 24, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of QR Energy, LP (NYSE: QRE) by Breitburn Energy Partners LP (NASDAQ: BBEP).  On July 24, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Breitburn will acquire QR Energy.  Under the terms of the agreement, QR Energy common and class B unit holders will 0.9856 units of Breitburn common units, for a total consideration of $22.48 per unit.
Robbins Arroyo LLP.

Is the Proposed Acquisition Best for QR Energy and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at QR Energy is undertaking a fair process to obtain maximum value and adequately compensate QR Energy shareholders.

As an initial matter, the $22.48 merger consideration represents a premium of 19.1% based on QR Energy's closing price on July 23, 2014.  This premium is significantly below the average one-day premium of 46.12% for comparable transactions in the past three years.  Further, the $22.48 merger consideration is below the target price set by a target price of $23.00 set by an analyst at Landenburg Thalmann & Co. on September 18, 2013. 

On July 24, 2014, simultaneous to the merger announcement, QR Energy released its preliminary operational and financial results for the company's second quarter 2014, reporting solid increases over the prior quarter.  Specifically, the company reported total revenue of $133.3 million, an increase of 9% compared to the previous quarter.  QR Energy's average production reached 20,264 Boe per day, an increase of 8% compared to the previous quarter, and the company's adjusted EBITDA increased 7% to $69.6 million. QR Energy also reported that its distributable cash flows increased 13% over the previous quarter, reaching $34.9 million

In light of these facts, Robbins Arroyo LLP is examining QR Energy's board of directors' decision to merge the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs