The loss was due to a noncash loss on derivatives of #$%$6M, a $145M swing from the last quarter due to the way accounting is done on hedges. So to it is just due to the oil and gas price fluctuation.
The prices recieved were still excelent though NGL prices were a bit lower and int expense was a bit higher so dcf was down $4m.
If the quarter was bad there would be no mgt fees. They did not pay one a few quarters ago, having to do with cash levels after the last aquisition.
Ignore GAAP accounting, it's heavily affected by noncash hedge derivative accounting and is basically useless. DCF, reserve life, coverage, hedging, leverage, those are the metrics of concern, and on those notes QRE did fine, although this quarter was a bit of a dip (still 1.1 coverage).
The focus on coverage should be longer term than one quarter, so the price drop is an over-reaction, the yield was priced too high on this $2 higher. Definitely a buying opportunity, though having bought in the $17's, I'll hold off buying more on the chance it will drop further, maybe as the market deteriorates as a whole the remainder of this fall.
Must be some Obama math, mgt is rewarded for having a bad Qtr. In addition funds for distribution were reduced 16%, was that for 3rd qtr or going forward? Sort of need to watch the numbers, the pps dropped $5 so far this year so the yield % when up when in fact the money went down.