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QR Energy, LP Common Units repr Message Board

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  • mobettafred mobettafred May 15, 2012 5:29 PM Flag

    Better posted, is this positive news for QR Energy, LP or not?

    Sounds like a loaded question - It is a lengthy article (well worth reading) with many good points.

    After reading why the s&p rated them the way they did, I think there are much safer investments especially with these market conditions and what has happened with chk.

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    • I dont think this is good or bad but a realistic assesment of the current conditions at QRE but I reach a different conclusion than mobettafred. Buy QRE if you want 11% yield and an 20% capital gain in the next year. I cant think of a safer way to get those results. I know of higher growth stocks but not with this yield nor this low price. I also know of other high yields but I doubt your going to get the price growth because they are not fire sale cheap like QRE.

      If you dson't believe me look at the mgmt buys this week in the 4K fileings.

      • 2 Replies to chegerar
      • Thanks for posting the info on form 4 filings. Some officers and directors bought a few thousand shares on open market, not as part of a granted stock option.

        This is money out of their own pocket, hopefully they see the long term value (not to mention 11% yield)that Mr Market does not.

      • Your risk tolerance is definitely a factor. This is the part that stood out to me - reserve base that is small ..... aggressive financial policy .....that relies heavily on acquisitions.................... risk profile as vulnerable and its financial risk profile as aggressive......and its high cost structure....... risk profile as 'vulnerable' and its financial risk profile as 'aggressive.' I left out the 'good stuff' because the financial vulnerability depending on acquisitions is what is matters to me - reminds me of chk - IMO respectfully

        this is the quote
        Rationale
        The ratings on QRE reflect a reserve base that is small relative to the
        company's speculative-grade E&P peers, an aggressive financial policy
        evidenced by a reserve replacement strategy that relies heavily on
        acquisitions, its relatively high dividend payout to shareholders, and its
        high cost structure. Our ratings also reflect QRE's good liquids exposure, and
        good hedge book over the next several years that should provide some stability
        against hydrocarbon volatility, a high percentage of lower risk proved
        developed reserves, and modest capital spending requirements.

        We consider the company's business risk profile as "vulnerable" and its
        financial risk profile as "aggressive."

 
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