Understanding other Quantum entities

Quantum Energy Partners has continued to grow since 1998 and has selectively branded certain companies/funds with the Quantum brand. While Quantum remains focused as an energy investor, these various Quantum-branded entities allow us to highlight certain segments and strategies within our business. All of these entities have strong ties and ownership back to the leadership of our flagship set of private equity funds, Quantum Energy Partners. A quick overview of these Quantum branded entities is provided herein:

Quantum Resources Management, LLC


In 2006, the founders of Quantum Energy Partners partnered with Don Wolf (Chairman) and Alex Cranberg to create Quantum Resources, an entity that is a hybrid between an institutional investment fund and an oil and gas operating company. Quantum Resources is principally focused on providing quarterly cash distributions to its investors, which it accomplishes by acquiring long-lived, mature, domestic, on-shore oil and gas properties and then enhancing their value through optimizing costs, pursuing operational enhancements and executing low-risk development drilling. Since inception Quantum Resources has acquired more than $1.4 billion of properties.

In 2009, Quantum Resources underwent a management restructuring whereby the headquarters of the company was moved from Denver to Houston and two partners from Quantum Energy Partners, Alan Smith and John Campbell, took over the leadership of the company. Alan Smith is the Chief Executive Officer and John Campbell is the President and Chief Operating Officer of Quantum Resources. In partnership with Don Wolf (continued on as Chairman), Alan and John have rebuilt the management team and continue to grow the business.

While Quantum Energy Partners is a traditional private equity investor that invests across the energy value chain and seeks to deliver high returns by partnering with exceptional management teams, Quantum Resources is a separate hybrid fund/operating company (akin to a private MLP) that targets asset acquisitions that can provide more moderate returns with strong predictability of cash flows and quarterly distributions to investors.

QR Energy, LP


In December 2010, Quantum Resources contributed some of its assets as part of an initial public offering to form QR Energy, LP, a public E&P MLP listed on the New York Stock Exchange under the ticker symbol QRE. The general partner of this public company is owned and controlled by the leadership team of Quantum Resources and Quantum Energy Partners. This company is managed by Quantum Resources Management under a services agreement and has its own independent Board of Directors that oversee and provide it with strategic direction.

QR Energy seeks to acquire and develop mature assets in an effort to grow its cash distributions to its shareholders over time. Among other things, it will likely benefit from its relationship with Quantum Energy Partners and Quantum Resources by partnering on select acquisition opportunities and also being able to compete for and acquire their assets and portfolio companies.

Quantum Utility Generation


In August 2010, Quantum Energy Partners founded this platform company in partnership with an industry-leading management team to invest in power generation projects in North America. Quantum Utility Generation (“QUG”) is an operating company with the capabilities to build, buy, manage, optimize and sell power generation assets across multiple fuel types. QUG is led by Larry Kellerman (CEO) and Sean O’Donnell (President and CFO).  QUG will serve as the exclusive platform for all power, utility and renewable investments made by Quantum Energy Partners across multiple funds.

QUG is headquartered in Houston, TX and is currently being capitalized with significant equity provided by Quantum Energy Partners and other strategic co-investors associated with Quantum.