QR Energy, LP (QRE), a North America-based company producing oil and natural gas properties, priced its IPO on 16th December, 2010 at midpoint of expected range at $20 per share, with a first day negative return of 2%.
Business Overview (from prospectus)
We are a Delaware limited partnership formed by affiliates of the Fund to own and acquire producing oil and natural gas properties in North America. Our properties consist of mature, legacy onshore oil and natural gas reservoirs with long-lived, predictable production profiles. As of June 30, 2010, our total estimated proved reserves were approximately 29.7 MMBoe, of which approximately 69% were oil and NGLs and 68% were classified as proved developed reserves. As of June 30, 2010, we operated 83% of our assets, as measured by value, based on the estimated future net revenues discounted at 10% of our estimated proved reserves, or standardized measure. Our estimated proved reserves had standardized measure of $467.3 million as of June 30, 2010. Based on our pro forma average net production for the nine months ended September 30, 2010 of 5,184 Boe/d, our total estimated proved reserves had a reserve-to-production ratio of 15.7 years.
Offering: 15 million shares at $20 per share. Net proceeds of approximately $200 million will be used for repayment of fund debt.
Sales revenues increased by $21.0 million to $74.3 million for the nine months ended September 30, 2010 as compared to sales revenues of $53.3 million for the nine months ended September 30, 2009...Lease operating expenses decreased slightly to $15.2 million for the nine months ended September 30, 2010 as compared to $16.9 million for the same period in 2009, as a result of decreased service costs...Depreciation, depletion and amortization expenses for the nine months ended September 30, 2010 totaled $18.3 million, or $12.96 per Boe roduced, as compared to $18.3 million, or $12.63 per Boe produced, for the nine months ended September 30, 2009...General and administrative expenses for the nine months ended September 30, 2009 and 2010 were $9.8 million, or $6.73 per Boe produced, and $12.3 million, or $8.71 per Boe produced, respectively...Net income for the nine months ended September 30, 2010 was $36.5 million as compared to a net loss of $31.7 million for the nine months ended September 30, 2009...
We operate in a highly competitive environment for acquiring properties and securing trained personnel. Many of our competitors possess and employ financial, technical and personnel resources substantially greater than ours, which can be particularly important in the areas in which we operate. As a result, our competitors may be able to pay more for productive oil and natural gas properties and exploratory prospects, as well as evaluate, bid for and purchase a greater number of properties and prospects than our financial or personnel resources permit. Our ability to acquire additional properties and to find and develop reserves will depend on our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. In addition, there is substantial competition for capital available for investment in the oil and natural gas industry.