QR Energy MLP Holders Selling $200 Million in Interests (QRE)

A filing from QR Energy, LP (NYSE: QRE) is going to allow selling unitholders to sell common units representing limited partner interests in the master limited partnership.  The filing is for up to $200 million and Yahoo! Finance lists the current market value of the common interests as being about $755.5 million.

This is a Delaware limited partnership formed in September 2010 to acquire, own and exploit producing oil and natural gas properties in North America. The MLPs properties consist of mature, legacy onshore oil and natural gas reservoirs with long-lived, predictable production profiles.

As of December 31, 2011, its total estimated proved reserves were approximately 75.2 MMBoe, of which approximately 56% were oil and NGLs and 68% were classified as proved developed reserves. As of December 31, 2011, the MLP produced from 3,867 gross (1,631 net) producing wells across its properties, with an average working interest of 42%. Its estimated proved reserves had standardized measure of $1.2 billion as of December 31, 2011.

Based on QR Energy’s own average net production for the year ended December 31, 2011 of 13,947 Boe/d, its total estimated proved reserves had a reserve-to-production ratio of 14.8 years.

QR Energy is trading down 0.9% at $21.13 and we have only seen volume of 46,500 today when an average daily volume is 130,000.  The 52-week trading range is $15.61 to $23.88.

FULL FILING

JON C. OGG