QR Energy To Acquire Oil Assets In Arkansas For $230 Million
by March 19, 2012 12:48 pm 69 views
Houston-based QR Energy said it will acquire predominantly oil properties located in four states: Arkansas, Louisiana, Texas and Michigan. The $230 million cash transaction involved an undisclosed private seller, according to a company press release.
The transaction is expected to close in late April and is subject to customary closing conditions.
QR Energy noted that approximately 95% of the reserves in the purchase are located in two mature oil fields in the Ark-La-Tex area, an area where the firm already has operations. The total transaction involves 150 producing wells.
“These oily, low decline, long life properties are an ideal fit for our MLP strategy and will enhance our liquids inventory in the Ark-La-Tex area,” said QR Energy CEO Alan L. Smith. “We expect this bolt-on transaction to be immediately accretive to Distributable Cash Flow and to supplement cash flow from our existing portfolio over the next several years.”
Barclays Capital and Wells Fargo Securities acted as financial advisors on the transaction.
QR Energy LP, which is publicly traded (NYSE: QRE), reported 2011 net income of $61.14 million on revenue of $259.87 million.