STATE OF DELAWARE | 001-34778 | 87-0287750 |
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
Exhibit No. | Exhibit | |
99.1 | Press release issued November 5, 2014, by QEP Resources, Inc. |
QEP Resources, Inc. | ||
(Registrant) | ||
November 5, 2014 | ||
/s/ Richard J. Doleshek | ||
Richard J. Doleshek | ||
Executive Vice President and Chief Financial Officer | ||
List of Exhibits: | ||
Exhibit No. | Exhibit | |
99.1 | Press release issued November 5, 2014, by QEP Resources, Inc. |
▪ | Reported record quarterly crude oil production of 4.7 MMBbl |
▪ | Delivered record quarterly Adjusted EBITDA |
▪ | Increased daily crude oil production by 77% over the third quarter 2013 to 50.8 Mbod driven by year-over-year Williston Basin oil production growth of 115% |
▪ | Increased daily production from Permian Basin properties by 18% from the second quarter 2014 to approximately 9.0 Mboed |
▪ | Increased crude oil to 35% of total equivalent production from 20% in the third quarter 2013 |
▪ | Entered into definitive agreement to sell midstream business for $2.5 billion in cash |
▪ | Entered into purchase and sale agreements to divest non-core properties in Southern Oklahoma for $108 million in cash |
Adjusted EBITDA by Subsidiary(1) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||
(in millions) | |||||||||||||||||||||
QEP Energy | $ | 373.6 | $ | 344.0 | 9 | % | $ | 1,078.5 | $ | 999.8 | 8 | % | |||||||||
QEP Marketing and Resources | (2.7 | ) | (3.2 | ) | 16 | % | (6.3 | ) | (3.8 | ) | 66 | % | |||||||||
Discontinued Operations | 38.4 | 54.3 | (29 | )% | 124.2 | 163.6 | (24 | )% | |||||||||||||
Adjusted EBITDA | $ | 409.3 | $ | 395.1 | 4 | % | $ | 1,196.4 | $ | 1,159.6 | 3 | % | |||||||||
(1) See attached financial tables of this release for a reconciliation of Adjusted EBITDA to net income attributable to QEP. |
▪ | Crude oil and NGL production increased 77% and 35%, respectively, while natural gas production decreased 24%, in the third quarter 2014, compared with the third quarter 2013. |
▪ | Net natural gas equivalent production increased by 2% to 79.2 Bcfe in the third quarter 2014 compared with 78.0 Bcfe in the third quarter 2013, due primarily to increased crude oil and NGL production in the Williston Basin and the addition of Permian Basin acquisition production, offset by decreased production in the Haynesville and in the Midcontinent, where we divested of assets in the second quarter 2014. |
▪ | Adjusted EBITDA increased 9% compared with the third quarter 2013, driven by increases in crude oil and NGL production volumes. Further, continued production growth in the Williston Basin and the addition of our Permian Basin acquisition more than offset the Adjusted EBITDA from the divested Midcontinent assets. This increase in Adjusted EBITDA from higher production volumes was offset partially by decreases of 10% and 21%, respectively, in the net realized prices of crude oil and NGL, combined with increases in lease operating expense, transportation expense and production and ad-valorem taxes. |
▪ | Crude oil and NGL revenues increased 47% compared with the third quarter 2013, and represented approximately 72% of field-level production revenues. |
▪ | QEP Energy's capital investment (on an accrual basis) for the first three quarters of 2014 was $1,284.1 million, excluding $941.8 million related to the Permian Basin acquisition, which closed in the first quarter 2014. |
▪ | The QEP Resources Board has authorized an extension of the Company’s share repurchase program for up to $500 million of the Company’s common shares. The program, originally authorized in January 2014, will now expire on December 31, 2015. The timing and amount of any QEP common share purchases will depend upon a number of factors, including general market conditions, the Company’s financial position and the estimated intrinsic value of the Company’s shares. |
▪ | The QEP Resources Board has extended the tenure of William L. Thacker beyond the term originally provided by the Cooperation Agreement entered into with JANA Partners, LLC in February 2014. That Agreement provided Mr. Thacker would remain on the Board until the completion of the separation of the Company’s midstream business. Mr. Thacker has agreed to stay on the Board until his term ends at the Company’s Annual Meeting in 2016. At that time, the Board will consider whether he, and the other incumbent directors whose terms end at that time, should be recommended for reelection. |
▪ | In October 2014, the Company announced that its wholly owned subsidiary, QEP Field Services Company, had entered into a definitive agreement to sell substantially all of its midstream business, including the Company's partnership interests in QEP Midstream Partners, LP, to Tesoro Logistics LP in an all cash transaction valued at $2.5 billion, including $230.0 million to refinance debt at QEP Midstream. QEP will retain ownership of QEP Field Services’ Haynesville Gathering System. As a result, QEP Field Services' business, excluding the retained ownership of the Haynesville gathering system, has been classified as assets held for sale on the Condensed Balance Sheet and as discontinued operations on the Condensed Statement of Operations. |
▪ | On October 31, 2014, QEP entered into two purchase and sale agreements to divest non-core properties in southern Oklahoma for an aggregate sale price of $108 million, subject to customary purchase price adjustments. The aggregate net book value of the properties being sold is approximately $37 million as of September 30, 2014. Any gain or loss on the sale recorded by the Company will be determined based upon the final purchase price. The Company expects to close the transactions by year end. |
Guidance and Assumptions | |||
2014 | 2014 | 2014 Fourth Quarter | |
Previous Forecast | Current Forecast | Current Forecast | |
QEP Energy oil production (MMBbl) | 14.7 - 15.2 | 16.3 - 16.5 | 4.3 - 4.5 |
QEP Energy NGL production (MMBbl) | 6.0 - 6.3 | 6.6 - 6.7 | 1.6 - 1.7 |
QEP Energy natural gas production (Bcf) | 165 - 175 | 175 - 178 | 40.0 - 43.0 |
QEP Energy total equivalent production (Bcfe) | 289 - 304 | 312 - 317 | 75.4 - 80.2 |
Lease operating and transportation expense (per Mcfe) | $1.50 - $1.65 | $1.55 - $1.65 | $1.50 - $1.65 |
QEP Energy Depletion, Depreciation and Amortization (per Mcfe) | $3.10 - $3.25 | $3.00 - $3.10 | $3.10 - $3.25 |
Production and property taxes, % of field-level revenue | 8% - 9% | 8.5% - 9.0% | 9% - 10% |
(figures below in millions) | |||
QEP Resources General and Administrative Expense(1) | $175 - $180 | $175 - $180 | $40 - $45 |
QEP Energy capital investment | $1,725 - $1,825 | $1,729 - $1,759 | $445 - $475 |
Corporate and other capital investment | $15 | $15 | $5 |
Total QEP Resources capital investment(1) | $1,740 - $1,840 | $1,744 - $1,774 | $450 - $480 |
QEP RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES | (in millions except per share data) | ||||||||||||||
Gas sales | $ | 171.6 | $ | 194.8 | $ | 609.2 | $ | 610.5 | |||||||
Oil sales | 393.5 | 253.8 | 1,041.0 | 656.3 | |||||||||||
NGL sales | 51.1 | 47.7 | 179.3 | 144.4 | |||||||||||
Other revenue | 3.4 | 2.8 | 5.1 | 8.7 | |||||||||||
Purchased gas, oil and NGL sales | 290.4 | 220.4 | 780.1 | 644.9 | |||||||||||
Total Revenues | 910.0 | 719.5 | 2,614.7 | 2,064.8 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Purchased gas, oil and NGL expense | 288.4 | 219.5 | 775.5 | 650.3 | |||||||||||
Lease operating expense | 61.1 | 43.5 | 177.0 | 130.2 | |||||||||||
Gas, oil and NGL transportation and other handling costs | 71.1 | 58.6 | 198.5 | 158.5 | |||||||||||
Gathering and other expense | 1.4 | 2.1 | 4.8 | 6.4 | |||||||||||
General and administrative | 49.4 | 40.7 | 147.0 | 116.8 | |||||||||||
Production and property taxes | 59.4 | 40.6 | 160.8 | 113.7 | |||||||||||
Depreciation, depletion and amortization | 251.4 | 238.4 | 712.5 | 719.3 | |||||||||||
Exploration expenses | 0.8 | 1.8 | 4.7 | 9.5 | |||||||||||
Impairment | 0.1 | 3.8 | 3.6 | 4.0 | |||||||||||
Total Operating Expenses | 783.1 | 649.0 | 2,184.4 | 1,908.7 | |||||||||||
Net gain (loss) from asset sales | (11.8 | ) | 12.8 | (210.3 | ) | 113.4 | |||||||||
OPERATING INCOME | 115.1 | 83.3 | 220.0 | 269.5 | |||||||||||
Realized and unrealized losses on derivative contracts | 155.7 | (27.8 | ) | (13.2 | ) | 51.6 | |||||||||
Interest and other income | 4.2 | 6.1 | 7.8 | 22.7 | |||||||||||
Income from unconsolidated affiliates | 0.1 | — | 0.2 | — | |||||||||||
Interest expense | (41.5 | ) | (41.4 | ) | (128.4 | ) | (124.7 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 233.6 | 20.2 | 86.4 | 219.1 | |||||||||||
Income tax provision | (79.9 | ) | (8.1 | ) | (26.1 | ) | (82.5 | ) | |||||||
NET INCOME FROM CONTINUING OPERATIONS | 153.7 | 12.1 | 60.3 | 136.6 | |||||||||||
Net income from discontinued operations, net of income tax | 17.4 | 25.2 | 58.2 | 74.8 | |||||||||||
NET INCOME ATTRIBUTABLE TO QEP | $ | 171.1 | $ | 37.3 | $ | 118.5 | $ | 211.4 | |||||||
Earnings Per Common Share Attributable to QEP | |||||||||||||||
Basic from continuing operations | $ | 0.85 | $ | 0.07 | $ | 0.34 | $ | 0.76 | |||||||
Basic from discontinued operations | 0.10 | 0.14 | 0.32 | 0.42 | |||||||||||
Basic total | $ | 0.95 | $ | 0.21 | $ | 0.66 | $ | 1.18 | |||||||
Diluted from continuing operations | $ | 0.84 | $ | 0.07 | $ | 0.34 | $ | 0.76 | |||||||
Diluted from discontinued operations | 0.10 | 0.14 | 0.32 | 0.42 | |||||||||||
Diluted total | $ | 0.94 | $ | 0.21 | $ | 0.66 | $ | 1.18 | |||||||
QEP RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||
Used in basic calculation | 180.1 | 179.3 | 180.0 | 179.2 | |||||||||||
Used in diluted calculation | 180.6 | 179.5 | 180.4 | 179.4 | |||||||||||
Dividends per common share | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.06 |
QEP RESOURCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
September 30, 2014 | December 31, 2013 | ||||||
ASSETS | (in millions) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | — | $ | 11.9 | |||
Accounts receivable, net | 599.4 | 316.3 | |||||
Fair value of derivative contracts | 32.6 | 0.2 | |||||
Gas, oil and NGL inventories, at lower of average cost or market | 16.4 | 13.4 | |||||
Deferred income taxes - current | — | 27.9 | |||||
Prepaid expenses and other | 50.8 | 45.4 | |||||
Current assets of discontinued operations held for sale | 138.3 | 122.0 | |||||
Total Current Assets | 837.5 | 537.1 | |||||
Property, Plant and Equipment (successful efforts method for oil and gas properties) | |||||||
Proved properties | 11,723.0 | 11,571.4 | |||||
Unproved properties | 1,120.5 | 665.1 | |||||
Midstream | 197.5 | 197.3 | |||||
Marketing and resources | 95.2 | 85.5 | |||||
Material and supplies | 55.3 | 54.3 | |||||
Total Property, Plant and Equipment | 13,191.5 | 12,573.6 | |||||
Less Accumulated Depreciation, Depletion and Amortization | |||||||
Exploration and production | 4,915.0 | 4,930.9 | |||||
Midstream | 34.3 | 28.1 | |||||
Marketing and resources | 29.8 | 22.1 | |||||
Total Accumulated Depreciation, Depletion and Amortization | 4,979.1 | 4,981.1 | |||||
Net Property, Plant and Equipment | 8,212.4 | 7,592.5 | |||||
Investment in unconsolidated affiliates | — | — | |||||
Fair value of derivative contracts | 12.7 | 1.0 | |||||
Restricted cash | — | 50.0 | |||||
Other noncurrent assets | 39.4 | 46.6 | |||||
Noncurrent assets of discontinued operations held for sale | 1,174.2 | $ | 1,167.7 | ||||
TOTAL ASSETS | $ | 10,276.2 | $ | 9,394.9 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Checks outstanding in excess of cash balances | $ | 36.8 | $ | 109.1 | |||
Accounts payable and accrued expenses | 691.4 | 361.9 | |||||
Production and property taxes | 73.5 | 49.4 | |||||
Interest payable | 34.1 | 37.2 | |||||
Fair value of derivative contracts | 4.5 | 26.7 | |||||
Deferred income taxes | 2.9 | — | |||||
Current liabilities of discontinued operations held for sale | 161.6 | 75.3 | |||||
Total Current Liabilities | 1,004.8 | 659.6 | |||||
Long-term debt | 3,115.5 | 2,997.5 | |||||
Deferred income taxes | 1,500.8 | 1,364.9 | |||||
Asset retirement obligations | 162.3 | 163.3 | |||||
Fair value of derivative contracts | 0.2 | — | |||||
Other long-term liabilities | 90.3 | 94.5 | |||||
Noncurrent liabilities of discontinued operations held for sale | 402.0 | 238.3 | |||||
Commitments and contingencies (Note 11) | |||||||
EQUITY | |||||||
Common stock - par value $0.01 per share; 500.0 million shares authorized; 180.9 million and 179.7 million shares issued, respectively | 1.8 | 1.8 | |||||
Treasury stock - 0.8 million and 0.4 million shares, respectively | (25.1 | ) | (14.9 | ) | |||
Additional paid-in capital | 527.2 | 498.4 | |||||
Retained earnings | 3,025.4 | 2,917.8 | |||||
Accumulated other comprehensive loss | (23.7 | ) | (26.5 | ) |
QEP RESOURCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
Total Common Shareholders' Equity | 3,505.6 | 3,376.6 | |||||
Noncontrolling interest | 494.7 | 500.2 | |||||
Total Equity | 4,000.3 | 3,876.8 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 10,276.2 | $ | 9,394.9 |
QEP RESOURCES, INC. CONSOLIDATED CASH FLOWS (Unaudited) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income attributable to QEP | $ | 118.5 | $ | 211.4 | |||
Net income attributable to noncontrolling interest | 17.6 | 5.8 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 755.8 | 757.1 | |||||
Deferred income taxes | 91.5 | 39.3 | |||||
Impairment | 3.6 | 4.0 | |||||
Equity-based compensation | 20.7 | 20.0 | |||||
Amortization of debt issuance costs and discounts | 5.1 | 4.7 | |||||
Net loss (gain) from asset sales | 210.3 | (113.0 | ) | ||||
Income from unconsolidated affiliates | (4.6 | ) | (3.7 | ) | |||
Distributions from unconsolidated affiliates and other | 5.1 | 5.9 | |||||
Unrealized (gain) loss on derivative contracts | (65.9 | ) | 55.5 | ||||
Changes in operating assets and liabilities | 62.0 | (8.1 | ) | ||||
Net Cash Provided by Operating Activities | 1,219.7 | 978.9 | |||||
INVESTING ACTIVITIES | |||||||
Property acquisitions | (949.7 | ) | (39.3 | ) | |||
Property, plant and equipment, including dry exploratory well expense | (1,270.4 | ) | (1,089.6 | ) | |||
Proceeds from disposition of assets | 706.2 | 208.3 | |||||
Acquisition deposit held in escrow | 50.0 | — | |||||
Other investing activities | 3.2 | — | |||||
Net Cash Used in Investing Activities | (1,460.7 | ) | (920.6 | ) | |||
FINANCING ACTIVITIES | |||||||
Checks outstanding in excess of cash balances | (81.1 | ) | (38.1 | ) | |||
Long-term debt issued | 300.0 | — | |||||
Long-term debt issuance costs paid | (1.1 | ) | (3.0 | ) | |||
Proceeds from credit facility | 4,509.0 | 2,132.5 | |||||
Repayments of credit facility | (4,461.5 | ) | (2,457.5 | ) | |||
Treasury stock repurchases | (6.6 | ) | (8.7 | ) | |||
Other capital contributions | 5.1 | 3.6 | |||||
Dividends paid | (10.8 | ) | (10.8 | ) | |||
Excess tax (provision) benefit on equity-based compensation | (0.6 | ) | 1.3 | ||||
Distribution to noncontrolling interest | (23.3 | ) | (4.2 | ) | |||
Net Cash Provided by Financing Activities | 229.1 | 64.7 | |||||
Change in cash and cash equivalents | (11.9 | ) | 123.0 | ||||
Beginning cash and cash equivalents | 11.9 | — | |||||
Ending cash and cash equivalents | $ | — | $ | 123.0 |
QEP RESOURCES, INC. OPERATIONS BY LINE OF BUSINESS (Unaudited) QEP Energy - Production by Region | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in Bcfe) | (in Bcfe) | ||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||
Northern Region | |||||||||||||||||
Pinedale | 26.4 | 25.2 | 5 | % | 72.6 | 70.1 | 4 | % | |||||||||
Williston Basin | 25.4 | 11.8 | 115 | % | 61.6 | 31.9 | 93 | % | |||||||||
Uinta Basin | 6.8 | 7.3 | (7 | )% | 19.8 | 20.1 | (1 | )% | |||||||||
Other Northern | 1.9 | 2.6 | (27 | )% | 7.9 | 9.6 | (18 | )% | |||||||||
Total Northern Region | 60.5 | 46.9 | 29 | % | 161.9 | 131.7 | 23 | % | |||||||||
Southern Region | |||||||||||||||||
Haynesville/Cotton Valley | 11.4 | 16.2 | (30 | )% | 38.9 | 57.3 | (32 | )% | |||||||||
Permian Basin | 5.0 | — | — | % | 10.4 | — | — | % | |||||||||
Midcontinent | 2.3 | 14.9 | (85 | )% | 25.6 | 44.9 | (43 | )% | |||||||||
Total Southern Region | 18.7 | 31.1 | (40 | )% | 74.9 | 102.2 | (27 | )% | |||||||||
Total production | 79.2 | 78.0 | 2 | % | 236.8 | 233.9 | 1 | % |
QEP Energy - Total Production | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||
QEP Energy Production Volumes | |||||||||||||||||
Gas (Bcf) | 41.8 | 55.2 | (24 | )% | 134.9 | 170.6 | (21 | )% | |||||||||
Oil (Mbbl) | 4,672.4 | 2,644.7 | 77 | % | 11,965.0 | 7,168.8 | 67 | % | |||||||||
NGL (Mbbl) | 1,563.5 | 1,153.9 | 35 | % | 5,017.8 | 3,377.4 | 49 | % | |||||||||
Total production (Bcfe) | 79.2 | 78.0 | 2 | % | 236.8 | 233.9 | 1 | % | |||||||||
Average daily production (MMcfe) | 860.9 | 857.1 | — | % | 867.4 | 856.8 | 1 | % |
QEP Energy - Prices | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||
Gas (per Mcf) | |||||||||||||||||||||
Average field-level price | $ | 4.10 | $ | 3.52 | $ | 4.52 | $ | 3.58 | |||||||||||||
Commodity derivative impact | 0.13 | 0.77 | (0.18 | ) | 0.65 | ||||||||||||||||
Net realized price | $ | 4.23 | $ | 4.29 | (1 | )% | $ | 4.34 | $ | 4.23 | 3 | % | |||||||||
Oil (per bbl) | |||||||||||||||||||||
Average field-level price | $ | 84.21 | $ | 95.98 | $ | 86.98 | $ | 91.55 | |||||||||||||
Commodity derivative impact | (2.60 | ) | (5.79 | ) | (4.20 | ) | (0.52 | ) | |||||||||||||
Net realized price | $ | 81.61 | $ | 90.19 | (10 | )% | $ | 82.78 | $ | 91.03 | (9 | )% | |||||||||
NGL (per bbl) | |||||||||||||||||||||
Average field-level price | $ | 32.68 | $ | 41.36 | $ | 35.68 | $ | 42.75 | |||||||||||||
Commodity derivative impact | — | — | — | — | |||||||||||||||||
Net realized price | $ | 32.68 | $ | 41.36 | (21 | )% | $ | 35.68 | $ | 42.75 | (17 | )% | |||||||||
Average net equivalent price (per Mcfe) | |||||||||||||||||||||
Average field-level price | $ | 7.77 | $ | 6.36 | $ | 7.72 | $ | 6.03 | |||||||||||||
Commodity derivative impact | (0.08 | ) | 0.35 | (0.31 | ) | 0.47 | |||||||||||||||
Net realized price | $ | 7.69 | $ | 6.71 | 15 | % | $ | 7.41 | $ | 6.50 | 14 | % |
QEP Energy - Operating Expenses | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||
(per Mcfe) | |||||||||||||||||||||
Depreciation, depletion and amortization | $ | 3.14 | $ | 3.02 | 4 | % | $ | 2.98 | $ | 3.04 | (2 | )% | |||||||||
Lease operating expense | 0.77 | 0.56 | 38 | % | 0.75 | 0.56 | 34 | % | |||||||||||||
Gas, oil and NGL transport & other handling costs | 0.95 | 0.84 | 13 | % | 0.89 | 0.77 | 16 | % | |||||||||||||
Production taxes | 0.75 | 0.51 | 47 | % | 0.67 | 0.48 | 40 | % | |||||||||||||
Total Operating Expenses | $ | 5.61 | $ | 4.93 | 14 | % | $ | 5.29 | $ | 4.85 | 9 | % | |||||||||
QEP Energy | QEP Marketing & Other (1) | Continuing Operations | Discontinued Operations | ||||||||||||
Three Months Ended September 30, 2014 | (in millions) | ||||||||||||||
Net income attributable to QEP | $ | 146.8 | $ | 6.9 | $ | 153.7 | $ | 17.4 | |||||||
Unrealized gains on derivative contracts | (160.8 | ) | (3.3 | ) | (164.1 | ) | — | ||||||||
Net loss (gain) from asset sales | 11.9 | (0.1 | ) | 11.8 | — | ||||||||||
Interest and other income | (3.9 | ) | (0.3 | ) | (4.2 | ) | — | ||||||||
Income tax provision | 72.7 | 7.2 | 79.9 | 9.9 | |||||||||||
Interest expense (income) (2) | 57.0 | (15.5 | ) | 41.5 | 0.8 | ||||||||||
Depreciation, depletion and amortization (3) | 249.0 | 2.4 | 251.4 | 10.3 | |||||||||||
Impairment | 0.1 | — | 0.1 | — | |||||||||||
Exploration expenses | 0.8 | — | 0.8 | — | |||||||||||
Adjusted EBITDA | $ | 373.6 | $ | (2.7 | ) | $ | 370.9 | $ | 38.4 | ||||||
Three Months Ended September 30, 2013 | |||||||||||||||
Net income attributable to QEP | $ | 9.6 | $ | 2.5 | $ | 12.1 | $ | 25.2 | |||||||
Unrealized losses on derivative contracts | 52.8 | 1.3 | 54.1 | — | |||||||||||
Net (gain) loss from asset sales | (12.8 | ) | — | (12.8 | ) | 0.1 | |||||||||
Interest and other (income) loss | (2.6 | ) | (3.5 | ) | (6.1 | ) | 2.1 | ||||||||
Income tax provision | 6.2 | 1.9 | 8.1 | 14.2 | |||||||||||
Interest expense (income) (2) | 49.2 | (7.8 | ) | 41.4 | 0.2 | ||||||||||
Depreciation, depletion and amortization (3) | 236.0 | 2.4 | 238.4 | 12.5 | |||||||||||
Impairment | 3.8 | — | 3.8 | — | |||||||||||
Exploration expenses | 1.8 | — | 1.8 | — | |||||||||||
Adjusted EBITDA | $ | 344.0 | $ | (3.2 | ) | $ | 340.8 | $ | 54.3 | ||||||
(1) Includes intercompany eliminations. | |||||||||||||||
(2) Excludes noncontrolling interest's share of $0.7 million and $0.1 million during the three months ended September 30, 2014 and 2013, respectively, of interest expense attributable to QEP Midstream. | |||||||||||||||
(3) Excludes noncontrolling interest's share of $4.0 million and $2.2 million during the three months ended September 30, 2014 and 2013, respectively, of depreciation, depletion and amortization attributable to Rendezvous Gas Services, L.L.C and QEP Midstream. |
QEP Energy | QEP Marketing & Other (1) | QEP Resources | Discontinued Operations | ||||||||||||
Nine Months Ended September 30, 2014 | (in millions) | ||||||||||||||
Net income attributable to QEP | $ | 49.3 | $ | 11.0 | $ | 60.3 | $ | 58.2 | |||||||
Unrealized gains on derivative contracts | (63.8 | ) | (2.1 | ) | (65.9 | ) | — | ||||||||
Net loss (gain) from asset sales | 210.3 | — | 210.3 | 0.1 | |||||||||||
Interest and other income | (7.4 | ) | (0.4 | ) | (7.8 | ) | — | ||||||||
Income tax provision | 14.6 | 11.5 | 26.1 | 32.8 | |||||||||||
Interest expense (income) (2) | 162.5 | (34.1 | ) | 128.4 | 1.7 | ||||||||||
Depreciation, depletion and amortization (3) | 704.7 | 7.8 | 712.5 | 31.4 | |||||||||||
Impairment | 3.6 | — | 3.6 | — | |||||||||||
Exploration expenses | 4.7 | — | 4.7 | — | |||||||||||
Adjusted EBITDA | $ | 1,078.5 | $ | (6.3 | ) | $ | 1,072.2 | $ | 124.2 | ||||||
Nine Months Ended September 30, 2013 | |||||||||||||||
Net income attributable to QEP | $ | 121.9 | $ | 14.7 | $ | 136.6 | $ | 74.8 | |||||||
Unrealized losses on derivative contracts | 58.7 | (3.2 | ) | 55.5 | — | ||||||||||
Net (gain) loss from asset sales | (113.4 | ) | — | (113.4 | ) | 0.5 | |||||||||
Interest and other (income) loss | (7.5 | ) | (15.2 | ) | (22.7 | ) | 13.7 | ||||||||
Income tax provision | 71.1 | 11.4 | 82.5 | 42.4 | |||||||||||
Interest expense (income) (2) | 143.4 | (18.7 | ) | 124.7 | (2.4 | ) | |||||||||
Depreciation, depletion and amortization (3) | 712.1 | 7.2 | 719.3 | 34.6 | |||||||||||
Impairment | 4.0 | — | 4.0 | — | |||||||||||
Exploration expenses | 9.5 | — | 9.5 | — | |||||||||||
Adjusted EBITDA | $ | 999.8 | $ | (3.8 | ) | $ | 996.0 | $ | 163.6 | ||||||
(1) Includes intercompany eliminations. | |||||||||||||||
(2) Excludes noncontrolling interest's share of $1.1 million and $0.1 million during the nine months ended months ended September 30, 2014 and 2013, respectively, of interest expense attributable to QEP Midstream. | |||||||||||||||
(3) Excludes noncontrolling interest's share of $11.7 million and $3.2 million during the nine months ended September 30, 2014 and 2013, respectively, of depreciation, depletion and amortization attributable to Rendezvous Gas Services, L.L.C and QEP Midstream. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions, except per earnings per share) | |||||||||||||||
Net income (loss) attributable to QEP | $ | 171.1 | $ | 37.3 | $ | 118.5 | $ | 211.4 | |||||||
Adjustments to net income (loss) | |||||||||||||||
Net loss (gain) from asset sales | 11.8 | (12.8 | ) | 210.2 | (113.0 | ) | |||||||||
Income tax (benefit) provision from asset sales | (4.4 | ) | 4.9 | (78.2 | ) | 42.2 | |||||||||
Unrealized loss (gain) on derivative contracts | (164.1 | ) | 54.1 | (65.9 | ) | 55.5 | |||||||||
Income tax (benefit) provision on unrealized loss (gain) on derivative contracts | 61.0 | (20.2 | ) | 24.5 | (20.6 | ) | |||||||||
Total after-tax adjustments to net income | (95.7 | ) | 26.0 | 90.6 | (35.9 | ) | |||||||||
Adjusted net income attributable to QEP Resources | $ | 75.4 | $ | 63.3 | $ | 209.1 | $ | 175.5 | |||||||
Earnings per Common Share attributable to QEP | |||||||||||||||
Diluted earnings per share | $ | 0.94 | $ | 0.21 | $ | 0.66 | $ | 1.18 | |||||||
Diluted after-tax adjustments to net income per share | (0.53 | ) | 0.15 | 0.50 | (0.20 | ) | |||||||||
Diluted Adjusted Net Income per share | $ | 0.41 | $ | 0.36 | $ | 1.16 | $ | 0.98 | |||||||
Weighted-average common shares outstanding | |||||||||||||||
Diluted | 181.0 | 179.5 | 180.7 | 179.4 | |||||||||||
Year | Type of Contract | Index | Total Volumes | Average Swap price per unit | |||||||
(in millions) | |||||||||||
Gas sales | (MMBtu) | ||||||||||
2014 | SWAP | NYMEX | 7.4 | $ | 4.22 | ||||||
2014 | SWAP | IFNPCR | 20.2 | $ | 4.08 | ||||||
2015 | SWAP | NYMEX | 25.6 | $ | 4.14 | ||||||
2015 | SWAP | IFNPCR | 11.0 | $ | 4.06 | ||||||
Oil Sales | (Bbls) | ||||||||||
2014 | SWAP | NYMEX WTI | 3.1 | $ | 93.54 | ||||||
2015 | SWAP | NYMEX WTI | 7.7 | $ | 90.04 | ||||||
2015 | SWAP | BRENT ICE | 0.4 | $ | 104.95 | ||||||
2016 | SWAP | NYMEX WTI | 0.4 | $ | 90.00 |
Year | Index | Index Less Differential | Total Volumes | Weighted Average Differential | |||||||
Oil basis swaps | (in millions) | ||||||||||
(Bbls) | |||||||||||
2014 | NYMEX WTI | ICE Brent | 0.2 | $ | 13.78 | ||||||
2014 | NYMEX WTI | LLS | 0.2 | $ | 4.03 | ||||||
2015 | NYMEX WTI | LLS | 0.1 | $ | 4.03 |
Year | Type of Contract | Index | Total Volumes | Average Swap price per MMBtu | |||||||
(in millions) | |||||||||||
Gas sales | (MMBtu) | ||||||||||
2014 | SWAP | IFNPCR | 1.4 | $ | 4.03 | ||||||
2015 | SWAP | IFNPCR | 2.5 | $ | 4.07 | ||||||
2016 | SWAP | IFNPCR | 0.3 | $ | 3.87 | ||||||
Gas purchases | (MMBtu) | ||||||||||
2014 | SWAP | IFNPCR | 0.6 | $ | 3.86 | ||||||
2015 | SWAP | IFNPCR | 0.3 | $ | 3.27 |