UPDATE: Stifel Downgrades QR Energy LP On Pending Acquisition By Breitburn

In a report published Monday, Stifel analyst Brian Brungardt Jr. downgraded the rating on QR Energy LP (NYSE: QRE) from Buy to Hold, and removed the $21.00 price target.

In the report, Stifel noted, “We are transferring coverage from our colleague Dan Guffey. With the pending acquisition by Breitburn Energy Partners L.P. (BBEP), we are downgrading QRE to Hold from Buy as units are currently trading at a 2.7% discount to the implied buyout valuation. We would be more constructive should the units trade at a wider discount to the implied takeout valuation. We remind current QRE unitholders that they are expected to receive an increased yield post the merger as BBEP is expected to declare an annual DPU of $2.08 (or approximately $2.05 giving effect of the merger ratio).”

QR Energy LP closed on Friday at $19.71.