In a report published Friday, J.P. Morgan analyst Alistair J. Meadows downgraded the rating on QR Energy QRE from Overweight to Neutral, and lowered the price target from $20.00 to $19.00.
In the report, J.P. Morgan noted, “We rate QRE Neutral with a $19 Dec-13 PT as we see little chance for a distribution increase with the upcoming preferred conversion and investor confusion surrounding the management incentive fee. QRE's assets are 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.”
QR Energy closed on Thursday at $17.09.
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