Subsidiary Guarantors (Tables)

3 Months Ended

Mar. 31, 2014



Condensed Consolidating Balance Sheets
	March 31, 2014
		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Assets
Current assets
Cash	$	73	$	-	$	21,117	$	2,070	$	-	$	23,260
Accounts receivable		9		-		55,092		3,594		(1,028)		57,667
Due from affiliates		219,413		-		-		-		(216,036)		3,377
Derivative instruments		-		-		19,603		-		-		19,603
Prepaid and other current assets		-		-		1,567		83		-		1,650
Total current assets		219,495		-		97,379		5,747		(217,064)		105,557
Noncurrent assets
Oil and natural gas properties and other property and equipment, net		-		-		1,630,262		14,595		-		1,644,857
Derivative instruments		-		-		48,785		-		-		48,785
Investment in subsidiaries		675,968		-		16,800		-		(692,768)		-
Other assets		4,485		-		16,142		19,665		-		40,292
Total noncurrent assets		680,453		-		1,711,989		34,260		(692,768)		1,733,934
Total assets		899,948		-		1,809,368		40,007		(909,832)		1,839,491

Liabilities and Partners' Capital
Current liabilities
Current portions of asset retirement obligations	$	-	$	-	$	4,461	$	-	$	-	$	4,461
Due to affiliates		-		-		216,036		-		(216,036)		-
Derivative instruments		-		-		13,874		-		-		13,874
Accrued and other liabilities		18,769		-		59,511		1,714		(1,028)		78,966
Total current liabilities		18,769		-		293,882		1,714		(217,064)		97,301
Noncurrent liabilities
Long-term debt		296,723		-		678,000		-		-		974,723
Deferred Class B unit obligation		147,017										147,017
Derivative instruments		-		-		5,757		-		-		5,757
Asset retirement obligations		-		-		148,618		5,191		-		153,809
Other liabilities		-		-		7,143		7,533		-		14,676
Total noncurrent liabilities		443,740		-		839,518		12,724		-		1,295,982
Partners' capital
QR Energy, LP partners' capital		437,439		-		675,968		25,569		(701,537)		437,439
Noncontrolling interest		-		-		-		-		8,769		8,769
Total partners' capital		437,439		-		675,968		25,569		(692,768)		446,208
Total liabilities and partners' capital	$	899,948	$	-	$	1,809,368	$	40,007	$	(909,832)	$	1,839,491


Condensed Consolidating Balance Sheets
	December 31, 2013
		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Assets
Current assets
Cash	$	78	$	-	$	10,575	$	2,707	$	-	$	13,360
Accounts receivable		-		-		55,073		2,939		(570)		57,442
Due from affiliates		234,746		-		-		-		(230,831)		3,915
Derivative instruments		-		-		27,485		-		-		27,485
Prepaid and other current assets		-		-		1,718		141		-		1,859
Total current assets		234,824		-		94,851		5,787		(231,401)		104,061
Noncurrent assets
Oil and natural gas properties and other property and equipment, net		-		-		1,591,015		13,968		-		1,604,983
Derivative instruments		-		-		62,131		-		-		62,131
Investment in subsidiaries		711,734		-		16,478		-		(728,212)		-
Other assets		4,663		-		20,176		19,913		-		44,752
Total noncurrent assets		716,397		-		1,689,800		33,881		(728,212)		1,711,866
Total assets	$	951,221	$	-	$	1,784,651	$	39,668	$	(959,613)	$	1,815,927

Liabilities and Partners' Capital
Current liabilities
Current portions of asset retirement obligations	$	-	$	-	$	4,310	$	-	$	-	$	4,310
Due to affiliates		-		-		230,831		-		(230,831)		-
Derivative instruments		-		-		11,233		-		-		11,233
Accrued and other liabilities		25,718		-		52,100		1,797		(570)		79,045
Total current liabilities		25,718		-		298,474		1,797		(231,401)		94,588
Noncurrent liabilities
Long-term debt		296,593		-		615,000		-		-		911,593
Derivative instruments		-		-		6,251		-		-		6,251
Asset retirement obligations		-		-		145,893		5,118		-		151,011
Other liabilities		-		-		7,299		7,726		-		15,025
Total noncurrent liabilities		296,593		-		774,443		12,844		-		1,083,880
Partners' capital
QR Energy, LP partners' capital		628,910		-		711,734		25,027		(736,761)		628,910
Noncontrolling interest		-		-		-		-		8,549		8,549
Total partners' capital		628,910		-		711,734		25,027		(728,212)		637,459
Total liabilities and partners' capital	$	951,221	$	-	$	1,784,651	$	39,668	$	(959,613)	$	1,815,927

Condensed Consolidating Statements of Operations



Condensed Consolidating Statements of Operations

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Three Months Ended March 31, 2014
Total revenues	$	-	$	-	$	117,417	$	6,457	$	(1,251)	$	122,623
Expenses
Production and disposal and related expenses		-		-		46,019		5,851		(1,251)		50,619
Depreciation, depletion and amortization		-		-		29,735		101		-		29,836
General and administrative		1,814		-		8,341		-		-		10,155
Accretion of asset retirement obligations and acquisition and transaction costs		-		-		5,715		74		-		5,789
Total expenses		1,814		-		89,810		6,026		(1,251)		96,399
Operating income		(1,814)		-		27,607		431		-		26,224
Loss on commodity derivative contracts		-		-		(23,165)		-		-		(23,165)
Gain (loss) on Deferred Class B unit obligation		(5,240)		-		-		-		-		(5,240)
Interest expense, net, income tax expense and other income, net		(7,244)		-		(5,063)		92		-		(12,215)
Equity in earnings (loss)		(312)		-		309		-		3		-
Net (loss) income		(14,610)		-		(312)		523		3		(14,396)
Less: Net income attributable to noncontrolling interest		-		-		-		-		214		214
Net income (loss) attributable to QR Energy, LP	$	(14,610)	$	-	$	(312)	$	523	$	(211)	$	(14,610)

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 March 31, 2014
Net income (loss)	$	(14,610)	$	-	$	(312)	$	523	$	3	$	(14,396)
Other comprehensive income, net of tax:
Reclassification adjustment for avail-for-sale securities		-		-		-		(14)		-		(14)
Change in fair value of available-for-sale securities		34				34		73		(68)		73
Pension and postretirement benefit:
Actuarial gain		(25)				(25)		(44)		50		(44)
Total other comprehensive income		9		-		9		15		(18)		15
Total comprehensive income (loss)		(14,601)		-		(303)		538		(15)		(14,381)
Less: Comprehensive income attributable to noncontrolling interest		-		-		-		-		220		220
Comprehensive income (loss) attributable to QR Energy, LP	$	(14,601)	$	-	$	(303)	$	538	$	(235)	$	(14,601)

Condensed Consolidating Statements of Cash Flows



Condensed Consolidating Statements of Cash Flows

		Parent Co-Issuer		Subsidiary Co-Issuer		Guarantor		Non-Guarantor		Eliminations		Consolidated
Three Months Ended March 31, 2014
Net cash (used in) provided by operating activities	$	(15,083)	$	-	$	57,589	$	(336)	$		$	42,170
Cash flows from investing activities
Additions to oil and natural gas properties		-		-		(29,107)		(726)		-		(29,833)
Acquisitions		-		-		(29,016)				-		(29,016)
Distributions from subsidiaries		51,924		-		-		-		(51,924)		-
Proceeds from sale of available-for-sale securities		-		-		-		614		-		614
Purchases of available-for-sale securities		-		-		-		(189)		-		(189)
Net cash (used in) provided by investing activities		51,924		-		(58,123)		(301)		(51,924)		(58,424)
Cash flows from financing activities
Distributions to unitholders		(35,422)		-		-		-		-		(35,422)
Proceeds from bank borrowings		-		-		63,000		-		-		63,000
Distributions to Parent		-		-		(51,924)		-		51,924		-
Other		(1,424)		-		-		-		-		(1,424)
Net cash (used in) provided by financing activities		(36,846)		-		11,076		-		51,924		26,154
Net increase (decrease) in cash		(5)		-		10,542		(637)		-		9,900
Cash at beginning of period		78		-		10,575		2,707		-		13,360
Cash at end of period	$	73	$	-	$	21,117	$	2,070	$	-	$	23,260