3 Mar 2014capital raising announcement● NeutralMajor
On March 2-3, 2014, QR Energy bought 100% of its general partner, QRE GP, LLC, from QR Holdings (QRE), LLC and QR Energy Holdings, LLC, and ended the Management Incentive Fee (the fee that in March 2013 was partly paid in Class B Units). In exchange the sellers can receive up to 11,552,184 Class B units in up to four equal installments of 2,888,046, in any four of the six years starting 2014, only if the year's distributions are at least $0.4744 per unit each quarter, distribution coverage is at least 1.0, and debt to EBITDAX stays at or below 4.0 (unless the conflicts committee waives it). The filing states this is a change of control of the partnership. Separately, the company set up an at-the-market program to sell up to $100 million of common units through UBS, Credit Suisse and JonesTrading, and amended its credit agreement (Sixth Amendment) to permit the buyout; it also furnished fourth-quarter 2013 results and 2014 guidance, whose figures are cut off in the text provided.
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6 Mar 2013capital raising announcement● NeutralMajor
On March 4, 2013, QR Energy issued 6,133,558 new Class B Units to its general partner after the general partner chose to take 80% of its fourth-quarter 2012 management incentive fee in units instead of cash; the fee falls to $0.7 million and the Class B Units get a $3.0 million distribution for the quarter. The Class B Units convert one-to-one into common units and carry the same distribution rights, so this modestly increases the unit count. The same filing furnished fourth-quarter 2012 results: net income $1.9 million, Adjusted EBITDA $71.1 million, distributable cash flow $39.3 million, a $0.4875 per unit distribution paid February 15, 2013, and $766 million of debt outstanding with $400 million undrawn.
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12 Sept 2011capital raising announcement● NeutralMajor
On September 12, 2011, QR Energy agreed to buy oil and gas properties in Texas, Oklahoma and New Mexico from its Quantum fund affiliates for about $234 million in cash (including $7 million of estimated fees) plus 16,666,667 new Class C Convertible Preferred Units with a $21.00 par value. The cash would come from its credit facility, with the borrowing base expected to rise by $300 million to $630 million. This is a related-party deal under the omnibus agreement, approved by the general partner's independent conflicts committee, and was expected to close around October 1, 2011.
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