UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on QR Energy LP on 4Q12 Adjusted EBITDA

In a report published Friday, J.P. Morgan reiterated its Overweight rating on QR Energy LP QRE, but slightly lowered its price target from $21.00 to $20.00. J.P. Morgan noted, “We rate QRE Overweight with a $20 Dec-13 PT. QRE, an upstream MLP, has assets located in the Permian, Ark-La-Tex, Mid-Continent, Gulf Coast and Michigan with production nearly split roughly 70%/30% between liquids and gas. QRE is able to leverage QRF's and QEP's strong sponsorship in terms of deal flow and management expertise, allowing the partnership to participate in larger deals unavailable to similar-sized peers. With one of the highest yields among peer upstream MLPs, we continue to believe the current yield compensates patient investors even with the upcoming preferred conversion and cash G&A increase.” QR Energy LP closed on Thursday at $17.35.