Quest's New Partnership Earns $6.4 Million in Short Period of Inception
Quest Energy Partners L.P., a natural gas and oil and gas master limited partnership (MLP) that was formed from the contribution of certain natural gas and oil producing properties from Quest Resource Corporation, announced unaudited results for its fourth quarter 2007 and provided updated guidance for full year 2008.
The Partnership's fourth quarter began on November 15, 2007, when its initial public offering was completed, and ended on December 31, 2007. Adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA), a non-GAAP measure, totaled $6.4 million for the period. A distribution of $4.4 million was paid on February 14, 2008 to unitholders of record at the close of business on February 7, 2008 based on an annualized distribution rate of $1.60 per unit. Adjusted EBITDA is reconciled to Net Income and Net Cash from Operating Activities, its most directly comparable GAAP measures in the attached financial schedules.
The net loss for the period totaled $18.5 million as results were impacted by approximately $13.1 million of interest expense associated with the Partnership's early retirement of debt with proceeds from its initial public offering and a $6.1 million unrealized loss on derivative instruments.
"We are pleased to have completed the Partnership's initial public offering in November and paid our first distribution in February, and look forward to generating solid returns for our unitholders over the long term," said Jerry Cash, Chairman, President, and Chief Executive Officer of the general partner of Quest Energy Partners. "We recently added 0.7 million barrels of oil reserves with the completion of the Partnership's first acquisition in February 2008 and based on the expected production gains from the 575 new wells connected in 2007 and our 325 well program for 2008, we are well positioned to generate internal distribution growth. In addition, we continue to opportunistically pursue attractive external opportunities to grow distributions."