US-based Breitburn Energy Partners will acquire QR Energy for approximately $3bn in unit-for-unit transactions.
QR Energy is focused on the acquisition, production and development of onshore crude oil and natural gas properties in the US.
The merger will create the largest oil-weighted upstream master limited partnership with a pro forma enterprise value of approximately $7.8bn.
Upon completion of the transaction, the newly formed entity will have an average production of 57,300boe/d, 67% liquids, based on second-quarter results.
The senior management team at Breitburn Energy will lead the combined company, which plans to employ QR Energy’s engineering, operations, and support staff, not including those retained by Quantum Resources Management.
Breitburn Energy chief executive officer Halbert Washburn said: "This world-class portfolio of conventional properties in large, oil-rich basins fits perfectly with our asset base and improves our ability to deliver shallow, predictable decline rates that generate industry-leading margins."
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By GlobalDataQR Energy chief executive officer Alan Smith said: "We consider Breitburn an ideal merger partner and believe this combination creates an unrivaled operator of mature assets with exposure to nearly every conventional basin in the US."
The transaction is expected to be completed late this year or early 2015.
