QR Energy LP said it will buy some oil and natural gas properties across United States from its sponsor Quantum Resources Fund for $577 million.
The assets, located in Permian Basin in Texas, Ark-La-Tex (the intersection of Arkansas, Louisiana, Texas, and Oklahoma) and mid-continent, are expected to generate 8,000 barrels of oil equivalent per day in the fourth quarter, the company said.
Houston, Texas-based QR Energy will issue $350 million of convertible preferred units at $21 per unit to Quantum Resources Fund and will pay $227 million in cash by borrowing.
Private equity firm Quantum Energy Partners is invested in both the fund and the company.
The deal will immediately add to QR Energy's distributable cash flow per unit, the company -- which owns onshore and natural gas reserves in North America -- said in a statement.
Shares of QR Energy, which listed last December, closed at $17.13 on Friday on the New York Stock Exchange. They have been trading below $20 -- the price at which they listed -- for more than a month.
Source: Reuters
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