LOS ANGELES--(BUSINESS WIRE)--
BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP)
announced today that it has completed the acquisition of oil properties
and associated midstream assets in the Oklahoma Panhandle from Whiting
Oil and Gas Corporation, a wholly-owned subsidiary of Whiting Petroleum
Corporation (NYSE:WLL), for a preliminary adjusted purchase price of
approximately $846 million, including the approximately $86 million
deposit previously paid. The preliminary purchase price adjustments are
interim adjustments; the final adjusted purchase price will be
determined post-closing, subject to customary post-closing adjustments.
The purchase was made pursuant to a definitive agreement previously
announced on June 24, 2013. The Partnership also completed the
previously announced acquisitions of additional interests in certain of
the acquired assets from other sellers for an additional $30 million.
Hal Washburn, BreitBurn's CEO, said, "We are pleased to announce the
closing of this excellent acquisition which demonstrates our continued
commitment to supplement our organic growth with strategic acquisitions.
We expect this transaction to deliver meaningful accretion to our
distributable cash flow per unit and create solid long-term value for
unitholders. It also bolsters our growing platform of assets, personnel,
and technical capabilities in the Mid-Continent and Permian Basin and
positions us to take advantage of what we believe to be great
opportunities for further expansion in those regions. We look forward to
building upon Whiting's success and producing a steady stream of oil
from these fields for many years to come."
As planned, the Partnership used borrowings under its newly amended and
expanded credit facility to fund the transaction. Including the total
consideration for this acquisition, the Partnership has approximately
$1.05 billion in borrowings outstanding under its amended credit
facility which has a total borrowing capacity of $1.40 billion, leaving
the Partnership with net additional borrowing capacity of approximately
$350 million. Under the terms of its amended credit facility, the
Partnership expects to have a total leverage ratio of approximately
4.0-to-1 following closing. For the next three quarters, the total
leverage ratio permitted under the Partnership's amended credit facility
will be 4.75-to-1, assuming no refinancing. The Partnership's credit
facility was designed to accommodate the size of this acquisition while
providing flexibility for the orderly reduction of bank indebtedness
through a variety of opportunistic refinancing transactions.
About BreitBurn Energy Partners L.P.
BreitBurn Energy Partners L.P. is a publicly-traded independent oil and
gas master limited partnership focused on the acquisition, exploitation,
development, and production of oil and gas properties. The Partnership's
producing and non-producing crude oil and natural gas reserves are
located in Michigan, Wyoming, California, Texas, Oklahoma, Florida,
Indiana and Kentucky. See www.BreitBurn.com
for more information.
Cautionary Statement Regarding Forward-Looking
This press release contains forward-looking statements relating to the
Partnership's operations that are based on management's current
expectations, estimates and projections about its operations. Words and
phrases such as "will be determined," "excellent," "expects,"
"meaningful accretion," "solid long-term value," "positions us," "take
advantage," "great opportunities," "further expansion," "look forward to
building," "producing," "next three quarters," "orderly reduction,"
"future," "believe," "potential," and variations of such words and
similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance
and are subject to certain risks, uncertainties and other factors, some
of which are beyond our control and are difficult to predict. These
include risks relating to the Partnership's ability to efficiently
integrate the Whiting and other related assets; the Partnership's
financial performance and results, availability of sufficient cash flow
and other sources of liquidity to execute our business plan, prices and
demand for natural gas and oil, increases in operating costs,
uncertainties inherent in estimating our reserves and production, our
ability to replace reserves and efficiently develop our current
reserves, our ability to obtain sufficient quantities of CO2
necessary to carry out our enhanced oil recovery projects, political and
regulatory developments relating to taxes, derivatives and our oil and
gas operations, risks relating to our acquisitions, and the factors set
forth under the heading "Risk Factors" incorporated by reference from
our Annual Report on Form 10-K filed with the Securities and Exchange
Commission, and if applicable, our Quarterly Reports on Form 10-Q and
our Current Reports on Form 8-K. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in such
forward-looking statements. The reader should not place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release. Unless legally required, the Partnership undertakes
no obligation to update publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
Unpredictable or unknown factors not discussed herein also could have
material adverse effects on forward-looking statements.
Investor Relations Contacts:
BreitBurn Energy Partners L.P.
Executive Vice President and Chief Financial Officer
Source: BreitBurn Energy Partners L.P.
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