QR Energy, LP (NYSE:QRE) is a limited partnership which acquires and owns proved onshore oil and natural gas properties in North America. QR Energy is affiliated with Quantum Resource Funds, which is a collection of limited partnerships that were formed by Quantum Energy Partners a private equity firm. QR Energy, alone, owns a total estimated proved reserves of 29.7MM Barrel of Oil Equivalents (BOE) as of June 30th, 2010. Of these reserves 69% were oil and natural gas liquefied (NGL).
QR Energy's properties are distributed between 4 distinct regions. The largest is the Permian reserve which is located in western Texas and south eastern New Mexico. It corresponds to 60% of all of the company's reserves 45% of the company's BOE/day output. The next largest is the Ark-La-Tex area. This area is spread between eastern Texas, northern Louisiana, and southern Arkansas, and it consists of 27% of the company's reserves and 34% of its daily output. The next largest is the Mid-Continent area which is located mostly in Oklahoma and is 7% of the reserves and 11% of the daily production. Finally, the Gulf Cost area is located along the southern parts of Alabama Mississippi and parts of Louisiana and Florida. It is 6% of the reserves and 10% of the production.
QR Energy's relation with Quantum Energy Partners, a private equity firm, provides the company with access to potential acquisitions. Quantum Energy owns general partner interests in both the Quantum Resource Fund and the QR Energy LP. Because of this, QR Energy expects that it will have access to potential acquisitions or transactions of natural gas and oil assets which could benefit all parties involved. These transactions may be owned by the Quantum Resource Fund or may be portfolio companies of Quantum Energy Partners.
The company's initial public offering of stock on the NYSE occurred on December 16, 2010. The company offered 15M shares each for $20. This was directly within the initial price range of $19-$21.Th The IPO raised a total of $300M, and the lead underwriters of the deal were Wells Fargo (WFC), J P Morgan Chase (JPM), and Raymond James Financial (RJF).