Subsidiary Guarantors (Tables)

9 Months Ended

Sep. 30, 2013



Condensed Consolidating Balance Sheets
	September 30, 2013
		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Assets
Current assets
Cash	$	-	$	-	$	21,851	$	4,213	$	-	$	26,064
Accounts receivable		-		-		56,055		2,941		(319)		58,677
Due from affiliates		237,235		-		3,323		-		(238,011)		2,547
Derivative instruments		-		-		30,399		-		-		30,399
Prepaid and other current assets		-		-		1,705		489		-		2,194
Total current assets		237,235		-		113,333		7,643		(238,330)		119,881
Noncurrent assets
Oil and natural gas properties and other property and equipment, net		-		-		1,562,752		13,056		-		1,575,808
Derivative instruments		-		-		63,070		-		-		63,070
Investment in subsidiaries		708,451		-		13,194		-		(721,645)		-
Other assets		4,840		-		17,673		17,265		-		39,778
Total noncurrent assets		713,291		-		1,656,689		30,321		(721,645)		1,678,656
Total assets	$	950,526	$	-	$	1,770,022	$	37,964	$	(959,975)	$	1,798,537

Liabilities and Partners' Capital
Current liabilities
Current portions of asset retirement obligations	$	-	$	-	$	1,729	$	-	$	-	$	1,729
Due to affiliates		775		-		237,235		-		(238,010)		-
Derivative instruments		-		-		15,306		-		-		15,306
Accrued and other liabilities		8,125		-		54,781		1,998		(319)		64,585
Total current liabilities		8,900		-		309,051		1,998		(238,329)		81,620
Noncurrent liabilities
Long-term debt		296,464		-		600,000		-		-		896,464
Derivative instruments		-		-		9,247		-		-		9,247
Asset retirement obligations		-		-		136,194		4,659		-		140,853
Other liabilities		-		-		7,079		11,855		-		18,934
Total noncurrent liabilities		296,464		-		752,520		16,514		-		1,065,498
Partners' capital
QR Energy, LP partners' capital		645,162		-		708,451		19,452		(727,903)		645,162
Noncontrolling interest		-		-		-		-		6,257		6,257
Total partners' capital		645,162		-		708,451		19,452		(721,646)		651,419
Total liabilities and partners' capital	$	950,526	$	-	$	1,770,022	$	37,964	$	(959,975)	$	1,798,537

Condensed Consolidating Statements of Operations



Condensed Consolidating Statements of Operations

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Three Months Ended September 30, 2013
Total revenues	$	-	$	-	$	122,150	$	4,506	$	(649)	$	126,007
Expenses
Production and disposal and related expenses		-		-		44,010		3,895		(649)		47,256
Depreciation, depletion and amortization		-		-		27,961		57		-		28,018
General and administrative		1,939		-		9,265		-		-		11,204
Accretion of asset retirement obligations and acquisition and transaction costs		-		-		2,312		44		-		2,356
Total expenses		1,939		-		83,548		3,996		(649)		88,834
Operating income		(1,939)		-		38,602		510		-		37,173
Loss on commodity derivative contracts		-		-		(45,377)		-		-		(45,377)
Interest expense, net, income tax expense and other income, net		(7,244)		-		(6,044)		(5)		-		(13,293)
Equity in earnings		(12,536)		-		281		-		12,255		-
Net (loss) income		(21,719)		-		(12,538)		505		12,255		(21,497)
Less: Net income attributable to noncontrolling interest		-		-		-		-		222		222
Net income (loss) attributable to QR Energy, LP	$	(21,719)	$	-	$	(12,538)	$	505	$	12,033	$	(21,719)



Condensed Consolidating Statements of Operations

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Nine Months Ended September 30, 2013
Total revenues	$	-	$	-	$	332,466	$	4,506	$	(649)	$	336,323
Expenses
Production and disposal and related expenses		-		-		129,247		3,895		(649)		132,493
Depreciation, depletion and amortization		-		-		85,439		57		-		85,496
General and administrative		5,125		-		26,273		-		-		31,398
Accretion of asset retirement obligations and acquisition and transaction costs		-		-		6,422		44		-		6,466
Total expenses		5,125		-		247,381		3,996		(649)		255,853
Operating income		(5,125)		-		85,085		510		-		80,470
Loss on commodity derivative contracts		-		-		(11,860)		-		-		(11,860)
Interest expense, net, income tax expense and other income, net		(22,224)		-		(12,438)		(5)		-		(34,667)
Equity in earnings		61,070		-		281		-		(61,351)		-
Net (loss) income		33,721		-		61,068		505		(61,351)		33,943
Less: Net income attributable to noncontrolling interest		-		-		-		-		222		222
Net income (loss) attributable to QR Energy, LP	$	33,721	$	-	$	61,068	$	505	$	(61,573)	$	33,721

Condensed Consolidating Statements Of Comprehensive Income



Condensed Consolidating Statements of Comprehensive Income

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Three Months Ended September 30, 2013
Net income (loss)	$	(21,719)	$	-	$	(12,538)	$	505	$	12,255	$	(21,497)
Other comprehensive income, net of tax:
Change in fair value of available-for-sale securities		100		-		100		179		(200)		179
Total other comprehensive income		100		-		100		179		(200)		179
Total comprehensive income (loss)		(21,619)		-		(12,438)		684		12,055		(21,318)
Less: Comprehensive income attributable to noncontrolling interest		-		-		-		-		301		301
Comprehensive income (loss) attributable to QR Energy, LP	$	(21,619)	$	-	$	(12,438)	$	684	$	11,754	$	(21,619)



Condensed Consolidating Statements of Comprehensive Income

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Nine Months Ended September 30, 2013
Net income (loss)	$	33,721	$	-	$	61,068	$	505	$	(61,351)	$	33,943
Other comprehensive income, net of tax:
Change in fair value of available-for-sale securities		100		-		100		179		(200)		179
Total other comprehensive income		100		-		100		179		(200)		179
Total comprehensive income (loss)		33,821		-		61,168		684		(61,551)		34,122
Less: Comprehensive income attributable to noncontrolling interest		-		-		-		-		301		301
Comprehensive income (loss) attributable to QR Energy, LP	$	33,821	$	-	$	61,168	$	684	$	(61,852)	$	33,821

Condensed Consolidating Statements of Cash Flows



Condensed Consolidating Statements of Cash Flows

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Nine Months Ended September 30, 2013
Net cash (used in) provided by operating activities	$	(28,050)	$	-	$	169,511	$	357	$	-	$	141,818
Cash flows from investing activities
Additions to oil and natural gas properties		-		-		(65,898)		-		-		(65,898)
Acquisitions		-		-		(105,177)		3,481		-		(101,696)
Distributions from subsidiaries		136,449		-		-		-		(136,449)		-
Proceeds from sale of available-for-sale securities		-		-		-		4,643		-		4,643
Purchases of available-for-sale securities		-		-		-		(4,268)		-		(4,268)
Net cash (used in) provided by investing activities		136,449		-		(171,075)		3,856		(136,449)		(167,219)
Cash flows from financing activities
Distributions to unitholders		(106,226)		-		-		-		-		(106,226)
Proceeds from bank borrowings		-		-		150,000		-		-		150,000
Repayments on bank/intercompany borrowings		-		-		(20,000)		-		-		(20,000)
Repayments on intercompany borrowings		-		-		(33,213)		-		33,213		-
Distributions to Parent		-		-		(103,236)		-		103,236		-
Other		(2,241)		-		(1,904)		-		-		(4,145)
Net cash (used in) provided by financing activities		(108,467)		-		(8,353)		-		136,449		19,629
Net increase (decrease) in cash		(68)		-		(9,917)		4,213		-		(5,772)
Cash at beginning of period		68		-		31,768		-		-		31,836
Cash at end of period	$	-	$	-	$	21,851	$	4,213	$	-	$	26,064