Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update
QR Talks 2Q Results on Heels of Merger Deal Announcement
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QR Energy, LP has reported its preliminary operating and financial results for the second quarter of 2014 and provided third quarter 2014 and full-year guidance. The preliminary results provided herein are subject to review by QR Energy’s independent auditors.
QR Energy and Breitburn Energy Partners LP recently reported the signing of a definitive merger agreement pursuant to which Breitburn will merge with QR Energy in a unit-for-unit exchange valued at approximately $3.0 billion, including QR Energy’s existing net debt and the outstanding Class C Convertible Preferred Units. QR Energy has been designated one Board seat at closing.
Highlights for the Second Quarter 2014
- Revenue was $133.3 million for the second quarter of 2014, a 9% increase over the first quarter of 2014
- Average production of 20,264 Boe per day, up 8% from the first quarter, above stated guidance and comprised of approximately 71% crude oil and natural gas liquids
- Adjusted EBITDA was $69.6 million, up 7% from the first quarter of 2014
- Distributable Cash Flow was $34.9 million, a 13% increase over the first quarter of 2014
- Distribution Coverage Ratio of 1.1x
Chief Executive Officer Alan L. Smith commented, "Our team achieved excellent results in the second quarter with the execution of our expanded capital program, and we are very excited to announce a strategic combination with Breitburn that we believe will create significant value for our unitholders, both today and over the long-term. The combined company will be a stronger and more competitive MLP, with increased asset diversification and scale, and enhanced distribution stability, coverage and growth potential."
Results for the Second Quarter 2014
- Realized prices excluding commodity derivatives were $98.61 per barrel of oil, $4.58 per Mcf of natural gas and $34.56 per barrel of NGLs
- Lease operating expenses were $22.23 per Boe and in-line with stated guidance range of $21.00 to $23.00 per Boe
- Cash general and administrative expenses were $7.8 million, below the stated guidance range of $8.0 to $9.0 million
- Total capital expenditures were $39.6 million; maintenance capital remained unchanged at $18 million
- As of June 30, 2014, cash and equivalents were $6.4 million, and debt outstanding was approximately $1,012 million