Albert Alfonso • 35 Comments
Adam Galas • 59 Comments
Albert Alfonso • 11 Comments
Oct. 10, 2014, 10:55 AM
- In what's looking like at least a short-term capitulation move, investors are bailing out of upstream MLPs.
- Linn Energy (LINE -7.1%), BreitBurn Energy (BBEP -8.8%), EV Energy (EVEP -7.8%), Eagle Rock Energy (EROC -4.7%), QR Energy (QRE -8.1%), Legacy Reserves (LGCY -6.5%), Vanguard Natural Resources (VNR -10.3%).
- The JPMorgan Alerian MLP ETN (AMJ -2.9%) is down 12.4% over the last month.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP, AMZA, OSMS
- Previously: Breitburn Energy shelves $400M high-yield bond offering
Aug. 25, 2014, 5:35 PM
Jul. 28, 2014, 3:59 PM
- QRE Energy (QRE +2.8%) is upgraded to Buy from Hold with a $24.50 price target, up from $18, at Wunderlich, which believes shares are trading at a significant discount to arbitrage parity and offers a 32% total return.
- QRE and BreitBurn Energy Partners (NASDAQ:BBEP) recently announced the signing of a merger deal in which BBEP would acquire QRE in a unit-for-unit exchange; the firm notes its Buy rating is anchored on its investment thesis for BBEP, assuming that the merger would go through.
Jul. 24, 2014, 9:18 AM
Jul. 24, 2014, 7:27 AM
- Breitburn Energy Partners (NASDAQ:BBEP) agrees to acquire QR Energy (NYSE:QRE) in a unit-for-unit exchange implying a transaction value of ~$3B.
- QR unitholders will receive ~72M common units of BBEP, or 0.9856 of a unit, for each unit of QR Energy they own; the consideration to be received by QR unitholders is valued at $22.48/unit, a 19% premium to yesterday's closing price.
- BBEP's senior management team will lead the combined company; once the deal closes, BBEP will add a new director to its board that is mutually agreed upon by both companies.
- QRE +8.8%, BBEP -3.1% premarket.
Mar. 3, 2014, 12:39 PM
- QR Energy (QRE +3.2%) says it is simplifying its capital structure by purchasing its general partner, QRE GP.
- The owners of the GP agree to forgo future management incentive fees and their current ~0.1% general partner interest in exchange for the right to earn up to 11.6M Class B units, in four equal annual installments, provided certain QRE performance thresholds are met.
- QRE says the deal is 7% accretive to distributable cash flow per unit in 2014 and lowers its cost of capital, which should enhance competiveness in the acquisition market.
- Also: Q4 earnings.
Jul. 5, 2013, 11:32 AM
BreitBurn Energy (BBEP -4.7%) is off its worst lows after CEO Halbert Washburn discloses buying 30K shares on July 3 at an average $14.92, worth ~$447K. Shares have dropped 20% since Linn Energy's SEC inquiry news, which prompted Hedgeye to dub BBEP "Linn Energy junior." Other upstream MLPs also are lower: VNR -5.6%, QRE -6.5%, LRE -7%.| Jul. 5, 2013, 11:32 AM | 4 Comments
Jul. 3, 2013, 10:37 AM
It's shaping up as another difficult day for Linn Energy (LINE -9.3%) and LinnCo (LNCO -8%) after yesterday's selloff. After a round of downgrades, Stifel Nicolaus today cut its price target on both to $33 from $48. Selling the put portfolio would not be a wise option, the firm says; Linn would shed some controversy but sacrifice possible future cash flow. Baird cautions broadly on upstream MLPs; BBEP -9%, ARP -7.1%, VNR -6.3%, QRE -6.2%, EVEP -3.2%.| Jul. 3, 2013, 10:37 AM | 14 Comments
Jul. 2, 2013, 3:21 PMCaught up in the Linn/LinnCo downdraft is BreitBurn Energy Partners (BBEP -8.2%), which Hedgeye slammed this morning as "Linn Energy junior" whose fair value is $2-$8/unit and whose distribution is "largely a mirage." EV Energy Partners (EVEP -0.7%) and QR Energy (QRE -3.2%) also are mentioned as companies that "may significantly understate maintenance capex, and as a result, overstate DCF." | Jul. 2, 2013, 3:21 PM | 15 Comments
Jan. 2, 2013, 8:10 PM
QR Energy (QRE) has acquired $145M of oil properties located in the Jay field in the Florida Gulf Coast area from its sponsor, Quantum Resources Fund. The deal was closed on Friday and was financed with cash and borrowings under the firm's bank credit facility. Current net production from the mature wells comes to approximately 2500 Boed (90% oil and 10% NGLs), with estimated reserves of 11.3M Boe as of December 31. FY13 adjusted EBITDA for the properties is expected to exceed $35M. Shares +1.21% AH.| Jan. 2, 2013, 8:10 PM | 6 Comments
Dec. 7, 2012, 9:10 AM
Dec. 6, 2012, 5:57 PM
Dec. 6, 2012, 4:25 PM
QR Energy (QRE) -4.5% AH after announcing a public offering of 12M common units representing limited partner interests. QRE plans to use the net proceeds to repay debt and for general corporate purposes.| Dec. 6, 2012, 4:25 PM | 3 Comments
Nov. 8, 2012, 10:51 AM
QR Energy (QRE -2.5%) slips, continuing to reverse a summer rally, after missing Q3 earnings and revenue estimates on lower than expected prices and higher overhead costs. Raymond James says the midpoint of QRE's Q4 production target of 14.5K-14.9K boe/day average is below the firm's view going into the report.| Nov. 8, 2012, 10:51 AM
Aug. 15, 2012, 11:24 AM
QR Energy (QRE -1.6%) slips on a downgrade to Market Perform at Wells Fargo this morning, saying that distribution growth may prove "challenging" going forward due to higher G&A and interest expenses. The firm cuts its price target range to $17 - $19 from $19 - $21.| Aug. 15, 2012, 11:24 AM | 1 Comment
Apr. 11, 2012, 9:14 AM
Shares of QR Energy (QRE) move down 2.7% premarket after announcing a public offering of 6.2M shares of its common units. In addition, Quantum Resources Fund - a sponsor of QR Energy - is offering 11.297M common units in the offering.| Apr. 11, 2012, 9:14 AM