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QR Energy, LP Message Board

  • trey_dur1 trey_dur1 Mar 7, 2013 8:32 AM Flag

    unit payout to GP worth 33x annual fee

    the 6 m units issued to the GP are worth ~$100 m which is over 30 times the annual management fee of ~$3 m, right? I doubt the GP cares they sacrifice 80% of all future management fees, as the ongoing distributions from just holding the shares alone more than makes up for that. And those units can be sold at any time I understand, raising the possibility of the GP cashing out. Does anyone else worry that threat will put a lid on share price going forward?

    I'm still holding shares and April 17.5 puts I sold a while back for $2.05 so getting more shares for ~15.5 if put to, in part because QRE stil covering its dsitribution. ANd I note QRE, when it IPO'd end of 2010,distributed was 0.4125/unit. The distribution was raised Q1 of 2012 to 0.475, then to 0.4875 Q2. So good so far, and if premarket is any indication price hit a bottom yesterday, but I still iffy until I can find the details of the limits of future GP payouts - if anyone can suggest the pertinent filing I'd appreciate it

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