SOURCE: QR Energy

QR Energy

January 04, 2011 08:00 ET

QR Energy Announces Exercise of Underwriters' Option to Purchase Additional Common Units

HOUSTON, TX--(Marketwire - January 4, 2011) - QR Energy, LP, a Delaware limited partnership (NYSE: QRE), announced today that the underwriters of its previously underwritten initial public offering of 15,000,000 common units representing limited partner interests in the partnership, which closed on December 22, 2010, have exercised their full option to purchase an additional 2,250,000 common units at a price to the public of $20.00 per common unit.

Total net proceeds from the sale of these additional common units, after deducting estimated offering expenses, are approximately $42 million. The partnership intends to use the net proceeds from the underwriters' exercise of their option to pay a sponsor distribution. The issuance and delivery of the 2,250,000 common units was completed on January 3, 2011.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc. and RBC Capital Markets, LLC were joint book-running managers for the offering.

Robert W. Baird & Co. Incorporated, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Oppenheimer & Co. Inc. and Stifel, Nicolaus & Company, LLC were co-managers for the offering.

Copies of the prospectus relating to the offering may be obtained from the underwriters as follows:

Wells Fargo Securities, LLC
Attn: Equity Syndicate Dept.
375 Park Avenue
New York, New York 10152
Telephone: (800) 326-5897
Email: cmclientsupport@wellsfargo.com

J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: (866) 803-9204

Raymond James & Associates, Inc.
Attn: Equity Syndicate
880 Carillon Parkway
St. Petersburg, Florida 33716
Telephone: (800) 248-8863

RBC Capital Markets, LLC
Attn: Equity Syndicate
Three World Financial Center
200 Vesey Street, 8th Floor
New York, New York 10281
Telephone: (877) 822-4089

A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. The registration statement is available on the SEC's web site at http://www.sec.gov under the registrant's name, "QR Energy, LP." This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

QR Energy, LP is a publicly-traded master limited partnership engaged in the acquisition, production and development of onshore crude oil and natural gas properties in the United States. The company is headquartered in Houston, Texas. For more information visit the company's website at www.qrenergylp.com.

This news release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve certain risks and uncertainties, including, among others, our business plans may change as circumstances warrant and securities of QR Energy, LP may not ultimately be offered to the public because of general market conditions or other factors.

Contact Information

  • INVESTOR CONTACTS:
    Taylor B. Miele
    Investor Relations Specialist
    (713) 452-2990

    Cedric W. Burgher
    Chief Financial Officer
    (713) 452-2200