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Subsequent Events
 9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

NOTE 17 – SUBSEQUENT EVENTS 

  

In preparing the accompanying financial statements, we have reviewed events that have occurred after September 30, 2012,  through the issuance of the financial statements. 

Revolving Credit Facility Redetermination 

On October 30, 2012, we completed our semi-annual borrowing base redetermination which resulted in an increase in the borrowing base of our revolving credit facility from $655 million to $730 million. Refer to Note 9 – Long-Term Debt for further details.

Acquisition of Oil and Gas Properties 

On October 26, 2012, we entered into a purchase and sale agreement with a private seller to purchase predominately oil and natural gas properties in the Ark-La-Tex area for approximately $215 million. The acquisition is expected to close in the fourth quarter of 2012.

 

 

Derivative Contracts

 

In October 2012, we entered into new oil and natural gas derivative contracts for the years 2013 through 2017. These contracts were entered into with the same counterparties as our existing derivative contracts. The table below details the newly executed contracts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

Index

 

 

2013 

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

Oil positions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged Volume (Bbls/d)

 

 

WTI

 

 
627 

 

 
1,000 

 

 
931 

 

 
868 

 

 
817 

 

Average price ($/Bbls)

 

 

 

 

$
88.20 

 

$
87.53 

 

$
85.65 

 

$
84.65 

 

$
84.35 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas positions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged Volume (MMBtu/d)

 

 

Henry Hub

 

 
767 

 

 
715 

 

 
671 

 

 

 

 

 

 

 

Average price ($/MMBtu)

 

 

 

 

$
3.99 

 

$
4.27 

 

$
4.43 

 

 

 

 

 

 

 

Collars

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged Volume (MMBtu/d)

 

 

Henry Hub

 

 

 

 

 

 

 

 

 

 

 
630 

 

 
595 

 

Average floor price ($/MMBtu)

 

 

 

 

 

 

 

 

 

 

 

 

 

$
4.00 

 

$
4.00 

 

Average ceiling price ($/MMBtu)

 

 

 

 

 

 

 

 

 

 

 

 

 

$
5.55 

 

$
6.15 

 

 

 

Cost Allocation Methodology

 

On November 6, 2012, QRE GP approved a methodology for allocating general and administrative costs incurred by QRM on behalf of the Partnership upon the expiration of the current Services Agreement on December 31, 2012. Refer to Note 14 – Related Party Transactions for further details.

 

Completion of Senior Notes Exchange Offer

 

On November 7, 2012, the exchange offer for the Senior Notes, pursuant to a Form S-4 filed with the SEC, was completed. Refer to Note 9 – Long-term Debt for details.