QR Energy LP (QRE)

[Timothy Smith]

I think that QRE's current 12% yield is more than sufficient to compensate for these risks. The market seems to agree with me, since over 7.5 million of the 12 million units QRE put up for sale traded hands on Friday, December 7.

Both VNR and BBEP had secondaries in September of this year. Both secondaries were quickly absorbed by the market, and the unit price had returned to the pre-offering value within about a week. I believe that this QRE offering will be similar.