BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP) today announced it has signed a definitive agreement to acquire additional oil and natural gas properties in the Permian Basin in Texas for approximately $282 million, subject to customary closing conditions and purchase price adjustments, from CrownRock, L.P. The acquisition will be funded with borrowings under the Partnership's existing bank credit facility and is expected to close in 2013. The Partnership intends to immediately enter into at-the-money commodity hedges to provide price protection for a substantial portion of the proved production for five year.
Hal Washburn, BreitBurn's CEO said, "We are very pleased to announce this opportunistic, bolt-on acquisition that further increases our exposure to oil via the addition of high quality, familiar assets with significant recoverable oil in place. This is our third acquisition from CrownRock, further augmenting our Permian Basin oil production base and development opportunities. This acquisition provides us with new interests in additional oil and gas properties adjacent to our existing operations as well as incremental interests in oil and gas properties that we already own and operate. We believe the acquisition will be immediately accretive to distributable cash flow per unit at closing."
About BreitBurn Energy Partners L.P.
BreitBurn Energy Partners L.P. is a publicly-traded independent oil and gas 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, Oklahoma, California, Florida, Texas, Indiana and Kentucky. See www.BreitBurn.com for more information.
