QEP Resources, Inc. (NYSE: QEP) (QEP or the Company) today reported
second quarter 2020 financial and operating results and provided an
update to its 2020 plan in response to current market conditions.
Second Quarter 2020 Highlights
- Amended Credit Agreement increasing liquidity by more than $500
million
- Reduced capital expenditures to $36.6 million down from $178.5
million in the first quarter 2020
- Lowered lease operating expense by 37% compared to the second
quarter of 2019
- Generated $72.5 million of Net Cash Provided from Operating
Activities
- Delivered $95.3 million of Free Cash Flow (a non-GAAP
measure)
- Repurchased $57.0 million in principal amount of senior notes
at a discount
"Since early 2019, we have been focused on delivering value over
volume and have held firm to this principle during the pandemic. We
quickly took meaningful steps in response to market conditions to
proactively manage cash flow and preserve liquidity by
significantly reducing drilling and completion activity and by
curtailing uneconomic oil production," commented Tim Cutt,
President and CEO of QEP. "We have also benefited from the actions
taken over the last two years to streamline our business, which
consolidated our acreage footprint and significantly reduced
operating and overhead expenses. We continue to improve our outlook
for full-year 2020 and now expect to spend approximately $360
million of capital and generate more than $150 million in Free Cash
Flow at strip prices.
"During extremely challenging conditions, we continued to lower
development costs during the quarter, achieving peer leading
metrics in several categories. At the same time, we have continued
to deliver outstanding well results as evidenced by the performance
of our most recent County Line DSUs. We reduced drilling activity
and suspended completion operations in the Permian Basin in March,
but with the recent improvement in commodity prices, we plan to
pick up a second rig in September and resume completion operations
in November. In the Williston Basin, we have completed all operated
development activity for the year.
"We were able to take several important steps during the quarter
to further strengthen our financial position. We successfully
amended the credit facility, increasing liquidity by more than $500
million, which should provide us with the necessary financial
flexibility to execute our ongoing business plan. We also increased
our 2021 hedge position to more than 8.6 million barrels of oil at
an average price of approximately $43.50 per barrel, which is above
our expected Free Cash Flow break-even price in 2021.
"As we look forward, we remain focused on the health and safety
of our employees, contractors and the communities in which we
operate and we are committed to continuing to do our part in these
challenging times," concluded Cutt.
The Company has posted to its website www.qepres.com a
presentation that supplements the information provided in this
release.
OPERATIONS UPDATE
For the second quarter 2020, the Company drilled a total of 12
gross horizontal wells and turned 11 gross operated wells to
production in the Permian Basin and drilled six gross horizontal
wells in the Williston Basin. The average lateral length for the
wells completed in the Permian Basin in the second quarter 2020 was
11,099 feet. The average lateral length for the wells drilled in
the Williston Basin was 12,760 feet. The Company also re-completed
three gross wells in the Williston Basin during the quarter.
Production in the Permian Basin was 5.5 million barrels of oil
equivalent (MMboe) in the second quarter 2020, an increase of 20%
over the second quarter 2019. The increase was a result of putting
new wells on production, coupled with improved well performance,
attributable to changes in well completion design and higher gas
capture rates. Total Company oil equivalent production was 8.0
MMboe in the second quarter of 2020, an increase of 6% compared
with the second quarter 2019.
Oil and condensate production in the Permian Basin was 3.9
million barrels (MMbbl) in the second quarter 2020, an increase of
18% over the second quarter 2019. Total Company oil and condensate
production was 5.5 MMbbl in the second quarter 2020, up 6% compared
with the second quarter 2019. The oil and condensate production
increase was the result of an increase in volumes in the Permian
Basin, partially offset by lower Williston Basin volumes due to
reduced activity.
FINANCIAL UPDATE
The Company reported a net loss of $184.4 million in the second
quarter 2020, or $0.76 per diluted share, compared with net income
of $48.8 million, or $0.20 per diluted share, in the second quarter
2019. The $233.2 million decrease was primarily due to a $273.6
million increase in unrealized derivative losses, partially offset
by a $83.3 million increase in income tax benefit.
Net income (loss) includes non-cash gains and losses associated
with the change in the fair value of derivative instruments, gains
and losses from asset sales, gains and losses from debt
extinguishment, asset impairments and certain other items.
Excluding these items, the Company's second quarter 2020 Adjusted
Net Loss (a non-GAAP measure) was $14.4 million, or $0.06 per
diluted share, compared with an Adjusted Net Loss of $7.3 million,
or $0.04 per diluted share, for the second quarter 2019.
Adjusted EBITDA for the second quarter 2020 was $157.3 million
compared with $166.5 million in the second quarter 2019, a 6%
decrease. The decrease was primarily due to a $176.3 million
decrease in oil, gas, and NGL sales, partially offset by a $136.4
million increase in realized derivative gains, a $16.9 million
reduction in lease operating expenses, and a $14.0 million decrease
in production and property taxes.
The definitions and reconciliations of Adjusted Net Income and
Adjusted EBITDA is provided under the heading Non-GAAP Measures at
the end of this release.
Capital Investment
Capital investment, excluding property acquisitions, was $36.6
million (on an accrual basis) for the second quarter 2020, compared
with $169.9 million for the second quarter 2019, of which $31.2
million related to the drilling, completion and equipping of wells
and $4.8 million related to midstream infrastructure investment.
The decrease in capital expenditures was primarily related to our
decision to significantly reduce development in both the Permian
and Williston basins in response to the significant reduction in
oil price.
Operating Expenses
During the second quarter 2020, lease operating expense (LOE)
was $28.8 million, a decrease of 37% compared with the second
quarter 2019. The decrease was primarily due to a decrease in
workover activity, water disposal costs, maintenance and repair
expenses, and power and fuel expenses in the Williston and Permian
basins as a result of continuing efforts to reduce operating
expenses. Total Company LOE was $3.62 per Boe in the second quarter
2020, including Permian Basin LOE of $2.35 per Boe, which had a 46%
decrease compared with the second quarter 2019.
During the second quarter 2020, Transportation and Processing
Costs were $12.3 million, an increase of 24% compared with the
second quarter 2019. Adjusted Transportation and Processing Costs
(a non-GAAP measure) were $27.6 million, an increase of 22%
compared with the second quarter 2019. The increase was primarily
due to an increase in gathering and processing rates in the Permian
and Williston basins and increased production in the Permian Basin.
During the second quarter 2020, Transportation and Processing Costs
increased by $0.24 per Boe, or 18%, compared with the second
quarter 2019, while Adjusted Transportation and Processing Costs
increased by $0.47 per Boe, or 16%, compared with the second
quarter 2019.
The definition and reconciliation of Adjusted Transportation and
Processing Costs is provided under the heading Non-GAAP Measures at
the end of this release.
During the second quarter 2020, general and administrative
(G&A) expense was $26.3 million, a decrease of 17% compared
with the second quarter 2019. The decrease was primarily related to
workforce reductions and a reduction in strategic initiative costs,
partially offset by an increase in market value on the deferred
compensation plan. For the first half of 2020 G&A expense was
down 55% compared with 2019, primarily due to the work force
reductions, and decreases in expenses associated with strategic
initiatives in 2019 and decreased market value on the deferred
compensation plan.
Liquidity
Net Cash Provided by Operating Activities for the second quarter
2020 was $72.5 million, compared with $117.4 million for the second
quarter 2019.
The Company generated Free Cash Flow of $95.3 million for the
second quarter 2020 compared with an outspend of $32.0 million in
the second quarter 2019, an improvement of $127.3 million. The
improvement was primarily due to a $133.3 million decrease to
accrued property, plant and equipment capital expenditures,
partially offset by a $9.2 million decrease in Adjusted EBITDA.
Net Cash Provided by Operating Activities for the six months
ended June 30, 2020, was $224.4 million, compared with $195.7
million for the six months ended June 30, 2019.
The Company generated Free Cash Flow of $63.7 million during the
first six months of 2020, compared with an outspend of $104.1
million during the first six months of 2019, an improvement of
$167.8 million. The improvement was primarily due to a $122.0
million decrease in accrued capital investment and a $44.9 million
increase in Adjusted EBITDA.
During the second quarter 2020, QEP repurchased, at a discount,
$57.0 million in principal amount of its 6.875% Senior Notes due
March 2021.
In June 2020, QEP entered into the Eighth Amendment to its
Credit Agreement, which, among other things, provides for:
- a reduction in aggregate commitments from $1.25 billion to $850
million;
- the requirement that the Company’s material subsidiaries
guarantee the obligations under the Credit Agreement;
- changes to the leverage ratio and present value covenants, such
that they only pertain to net priority guaranteed debt;
- the ability to repurchase outstanding senior notes with up to
$500 million of credit facility proceeds;
- the ability to issue junior subsidiary guarantees of up to $500
million of unsecured debt;
- the revision of the applicable rate for all borrowings under
the Credit Agreement; and
- an unchanged maturity date of September 2022.
As of June 30, 2020, QEP had $3.4 million in cash and cash
equivalents, no borrowings under its revolving credit facility,
$10.9 million in letters of credit and was in compliance with the
covenants under its credit agreement. The Company also has a $165.0
million income tax receivable as of June 30, 2020, primarily
attributable to AMT credit refunds, that were accelerated by the
Coronavirus Aid, Relief, and Economic Security Act stimulus bill,
that it anticipates it will receive during the next twelve
months.
The definition and reconciliation of Free Cash Flow is provided
under the heading Non-GAAP Measures at the end of this release.
Updated 2020 Guidance
QEP's updated 2020 guidance assumes: (i) a WTI NYMEX an oil
price of $40 per barrel and a natural gas price of $2.00 per MMBtu
at Henry Hub, adjusted for applicable commodity and location
differentials, (ii) that QEP will elect to reject ethane from its
produced gas in the Permian Basin where processing
economics support it, and (iii) no property acquisitions or
divestitures, other than those already disclosed.
|
2020 |
2020 |
|
Original Guidance (5) |
Updated Guidance |
Oil & condensate
production (MMbbl) |
21.35 - 22.45 |
19.0 - 19.5 |
Gas production (Bcf) |
31.0 - 34.0 |
30.0 - 33.0 |
NGL production (MMbbl) |
5.0 - 5.6 |
4.1 - 4.6 |
Total oil equivalent production (MMboe) |
31.5 - 33.7 |
28.1 - 29.6 |
|
|
|
Lease operating expense (per
Boe) |
$5.20 - $5.80 |
$5.00 - $5.30 |
Adjusted transportation and
processing costs (per Boe) (1) |
$3.30 - $3.60 |
$3.60 - $3.90 |
Depletion, depreciation and
amortization (per Boe) |
$17.75 - $18.75 |
$17.75 - $18.75 |
Production and property taxes
(% of field-level revenue) |
7.5% |
8.5% |
(in millions) |
General and administrative expense (2) |
$85.0 - $95.0 |
$85.0 - $90.0 |
|
|
|
Capital investment (excluding
property acquisitions) |
|
|
Drilling, Completion and Equipment (3) |
$520.0 - $565.0 |
$325.0 - $360.0 |
Midstream Infrastructure(4) |
$20.0 - $25.0 |
$12.0 - $15.0 |
Corporate |
$5.0 |
$3.0 - $5.0 |
Total capital investment (excluding property acquisitions) |
$545.0 - $595.0 |
$340.0 - $380.0 |
|
|
|
Wells put on production
(net) |
69 |
44 |
Refracs put on production
(net) |
8 |
5 |
(1) Adjusted Transportation and Processing
Costs (per Boe) is a non-GAAP measure. Refer to the definitions and
reconciliations of Non-GAAP Measures at the end of this
release.(2) The mid-point of general and administrative
expense includes approximately $12.0 million of expenses related to
cash and non-cash share-based compensation and our deferred
compensation plan mark-to-market. Because our cash share-based
compensation and our deferred compensation plan liabilities
fluctuate with stock price changes, the amount of actual expense
may vary from the forecasted amount.(3) Drilling, Completion
and Equipment includes approximately $30.0 million of non-operated
well costs.(4) Includes capital expenditures in the Permian
Basin associated with (i) water sourcing, gathering, recycling and
disposal and (ii) crude oil and natural gas gathering
system.(5) Original guidance as of February 26, 2020.
The following tables present QEP's volumes and
average prices for its open derivative positions as of
July 22, 2020:
Production Commodity Derivative Swaps |
Year |
|
Index |
|
Total Volumes |
|
Average Swap Price per Unit |
|
|
|
|
(in millions) |
|
|
Oil
sales |
|
|
|
(bbls) |
|
($/bbl) |
2020 |
|
NYMEX WTI |
|
7.9 |
|
$ |
57.29 |
2020 |
|
Argus WTI Midland |
|
0.7 |
|
$ |
57.30 |
2021 |
|
NYMEX WTI |
|
8.6 |
|
$ |
43.47 |
Gas sales |
|
|
|
(MMbtu) |
|
($/MMbtu) |
2020 |
|
IF Waha |
|
7.4 |
|
$ |
0.97 |
2020 |
|
NYMEX HH |
|
5.5 |
|
$ |
2.20 |
2021 |
|
IF Waha |
|
14.6 |
|
$ |
1.75 |
2021 |
|
NYMEX HH |
|
9.1 |
|
$ |
2.44 |
Production Commodity Derivative Basis Swaps |
Year |
|
Index |
|
Basis |
|
Total Volumes |
|
Weighted-Average Differential |
|
|
|
|
|
|
(in millions) |
|
|
Oil
sales |
|
|
|
|
|
(bbls) |
|
($/bbl) |
2020 |
|
NYMEX WTI |
|
Argus WTI Midland |
|
3.7 |
|
$ |
0.22 |
2021 |
|
NYMEX WTI |
|
Argus WTI Midland |
|
4.4 |
|
$ |
0.99 |
Second Quarter 2020 Results Conference Call
QEP’s management will discuss second quarter 2020 results in a
conference call tomorrow, July 30, 2020, beginning at 9:00
a.m. ET. The conference call can be accessed at www.qepres.com. You
may also participate in the conference call by dialing (877)
869-3847 in the U.S. or Canada and (201) 689-8261 for international
calls. A replay of the teleconference will be available on the
website immediately after the call through August 30, 2020, or by
dialing (877) 660-6853 in the U.S. or Canada and (201) 612-7415 for
international calls, and then entering the conference ID #13707154.
In addition, QEP’s slides for the second quarter 2020 can be found
on the Company’s website.
About QEP Resources, Inc.
QEP Resources, Inc. (NYSE: QEP) is an independent crude oil
and natural gas exploration and production company focused in two
regions of the United States: the Southern Region (primarily
in Texas) and the Northern Region (primarily in North
Dakota). For more information, visit QEP's website at:
www.qepres.com.
Forward-Looking Statements
This release includes forward-looking statements within the
meaning of Section 27(a) of the Securities Act of 1933, as amended,
and Section 21(e) of the Securities Exchange Act of 1934, as
amended. Forward-looking statements can be identified by words such
as “anticipates,” “believes,” “forecasts,” “plans,” “estimates,”
“expects,” “should,” “will” or other similar expressions. Such
statements are based on management’s current expectations,
estimates and projections, which are subject to a wide range of
uncertainties and business risks. These forward-looking statements
include statements regarding: expectations regarding the Company's
outlook for 2020; reductions in expected capital expenditures;
generation of Free Cash Flow; anticipated receipt of AMT refunds
under the Coronavirus Aid, Relief, and Economic Security Act
stimulus bill; expectations regarding drilling and completion
activity in the Permian Basin; our ability to execute our business
plan; our 2021 break-even price; updated 2020 guidance and certain
underlying assumptions related thereto; and usefulness of non-GAAP
measures. Actual results may differ materially from those included
in the forward-looking statements due to a number of factors,
including, but not limited to: the length and severity of the
recent outbreak of the COVID-19 virus and its impact on QEP’s
business; changes in oil, gas and NGL prices; liquidity
constraints, including those resulting from the cost or
unavailability of financing due to debt and equity capital and
credit market conditions, changes in QEP’s credit rating, QEP’s
compliance with loan covenants, the increasing credit pressure on
QEP’s industry or demands for cash collateral by counterparties to
derivative and other contracts; market conditions; global
geopolitical and macroeconomic factors; the activities of the
Organization of Petroleum Exporting Countries and other oil
producing countries such as Russia; general economic conditions,
including interest rates; changes in local, regional, national and
global demand for natural oil, gas and NGL; impact of new laws and
regulations, including the use of hydraulic fracture stimulation;
impact of U.S. dollar exchange rates on oil, gas and NGL prices;
elimination of federal income tax deductions for oil and gas
exploration and development; guidance for implementation of the Tax
Cuts and Jobs Act; actual proceeds from asset sales; actions of
activist shareholders; tariffs on products QEP uses in its
operations or on the products QEP sells; drilling results;
shortages of oilfield equipment, services and personnel; the
availability of storage and refining capacity; operating risks such
as unexpected drilling conditions; transportation constraints,
including gas and crude oil pipeline takeaway capacity in the
Permian Basin; weather conditions; changes in maintenance, service
and construction costs; permitting delays; outcome of contingencies
such as legal proceedings; inadequate supplies of water and/or lack
of water disposal sources; credit worthiness of counterparties to
agreements; and the other risks discussed in the Company’s periodic
filings with the Securities and Exchange Commission, including the
Risk Factors section of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2019, as updated by the Risk
Factors section of the Company’s Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020. QEP Resources undertakes no
obligation to publicly correct or update the forward-looking
statements in this news release, in other documents, or on the
website to reflect future events or circumstances. All such
statements are expressly qualified by this cautionary
statement.
Contact |
Investors/Media: |
William I. Kent, IRC |
Director, Investor
Relations |
303-405-6665 |
QEP RESOURCES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
REVENUES |
|
(in millions, except per share amounts) |
Oil and condensate, gas and NGL sales |
|
$ |
118.3 |
|
|
$ |
294.6 |
|
|
$ |
340.1 |
|
|
$ |
570.2 |
|
Other revenues |
|
(0.2 |
) |
|
1.6 |
|
|
0.2 |
|
|
5.3 |
|
Purchased oil and gas sales |
|
2.5 |
|
|
— |
|
|
6.1 |
|
|
1.3 |
|
Total Revenues |
|
120.6 |
|
|
296.2 |
|
|
346.4 |
|
|
576.8 |
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
Purchased oil and gas expense |
|
3.9 |
|
|
— |
|
|
7.4 |
|
|
1.4 |
|
Lease operating expense |
|
28.8 |
|
|
45.7 |
|
|
69.0 |
|
|
97.2 |
|
Transportation and processing costs |
|
12.3 |
|
|
9.9 |
|
|
25.8 |
|
|
20.8 |
|
Gathering and other expense |
|
2.8 |
|
|
3.0 |
|
|
5.5 |
|
|
6.8 |
|
General and administrative |
|
26.3 |
|
|
31.5 |
|
|
42.2 |
|
|
94.8 |
|
Production and property taxes |
|
9.6 |
|
|
23.6 |
|
|
28.3 |
|
|
47.6 |
|
Depreciation, depletion and amortization |
|
149.4 |
|
|
128.0 |
|
|
291.6 |
|
|
251.3 |
|
Impairment |
|
— |
|
|
— |
|
|
— |
|
|
5.0 |
|
Total Operating Expenses |
|
233.1 |
|
|
241.7 |
|
|
469.8 |
|
|
524.9 |
|
Net gain (loss) from asset
sales, inclusive of restructuring costs |
|
— |
|
|
17.8 |
|
|
3.7 |
|
|
4.6 |
|
OPERATING INCOME (LOSS) |
|
(112.5 |
) |
|
72.3 |
|
|
(119.7 |
) |
|
56.5 |
|
Realized and unrealized gains
(losses) on derivative contracts |
|
(98.7 |
) |
|
38.5 |
|
|
351.2 |
|
|
(143.2 |
) |
Interest and other income
(expense) |
|
2.6 |
|
|
0.9 |
|
|
— |
|
|
3.7 |
|
Gain from early extinguishment
of debt |
|
0.4 |
|
|
— |
|
|
25.6 |
|
|
— |
|
Interest expense |
|
(29.8 |
) |
|
(33.2 |
) |
|
(61.4 |
) |
|
(67.2 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
(238.0 |
) |
|
78.5 |
|
|
195.7 |
|
|
(150.2 |
) |
Income tax (provision)
benefit |
|
53.6 |
|
|
(29.7 |
) |
|
(12.7 |
) |
|
82.3 |
|
NET INCOME (LOSS) |
|
$ |
(184.4 |
) |
|
$ |
48.8 |
|
|
$ |
183.0 |
|
|
$ |
(67.9 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.76 |
) |
|
$ |
0.20 |
|
|
$ |
0.76 |
|
|
$ |
(0.29 |
) |
Diluted |
|
$ |
(0.76 |
) |
|
$ |
0.20 |
|
|
$ |
0.76 |
|
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
Used in basic calculation |
|
242.3 |
|
|
238.0 |
|
|
240.7 |
|
|
237.5 |
|
Used in diluted calculation |
|
242.3 |
|
|
238.0 |
|
|
240.7 |
|
|
237.5 |
|
QEP RESOURCES, INC.CONDENSED
CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
June 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
(in millions) |
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
3.4 |
|
|
$ |
166.3 |
|
Accounts receivable, net |
|
97.9 |
|
|
108.4 |
|
Income tax receivable |
|
165.0 |
|
|
37.4 |
|
Fair value of derivative contracts |
|
169.4 |
|
|
1.5 |
|
Prepaid expenses and other current assets |
|
10.7 |
|
|
11.6 |
|
Total Current Assets |
|
446.4 |
|
|
325.2 |
|
Property, Plant and Equipment
(successful efforts method for oil and gas properties) |
|
|
|
|
Proved properties |
|
9,786.2 |
|
|
9,574.9 |
|
Unproved properties |
|
543.6 |
|
|
599.1 |
|
Gathering and other |
|
165.5 |
|
|
164.2 |
|
Materials and supplies |
|
16.5 |
|
|
15.6 |
|
Total Property, Plant and Equipment |
|
10,511.8 |
|
|
10,353.8 |
|
Less Accumulated Depreciation,
Depletion and Amortization |
|
|
|
|
Exploration and production |
|
5,482.4 |
|
|
5,250.5 |
|
Gathering and other |
|
66.3 |
|
|
61.0 |
|
Total Accumulated Depreciation, Depletion and Amortization |
|
5,548.7 |
|
|
5,311.5 |
|
Net Property, Plant and Equipment |
|
4,963.1 |
|
|
5,042.3 |
|
Fair value of derivative
contracts |
|
6.2 |
|
|
0.2 |
|
Operating lease right-of-use
assets, net |
|
54.1 |
|
|
56.8 |
|
Other noncurrent assets |
|
54.3 |
|
|
53.3 |
|
TOTAL ASSETS |
|
$ |
5,524.1 |
|
|
$ |
5,477.8 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Checks outstanding in excess of cash balances |
|
$ |
2.3 |
|
|
$ |
18.3 |
|
Accounts payable and accrued expenses |
|
157.0 |
|
|
227.2 |
|
Production and property taxes |
|
9.2 |
|
|
18.9 |
|
Current portion of long-term debt |
|
274.9 |
|
|
— |
|
Interest payable |
|
27.9 |
|
|
31.0 |
|
Fair value of derivative contracts |
|
1.8 |
|
|
18.7 |
|
Current operating lease liabilities |
|
20.3 |
|
|
18.0 |
|
Asset retirement obligations |
|
6.2 |
|
|
6.0 |
|
Total Current Liabilities |
|
499.6 |
|
|
338.1 |
|
Long-term debt |
|
1,589.4 |
|
|
2,015.6 |
|
Deferred income taxes |
|
416.1 |
|
|
274.5 |
|
Asset retirement
obligations |
|
94.9 |
|
|
94.9 |
|
Fair value of derivative
contracts |
|
3.2 |
|
|
0.5 |
|
Operating lease
liabilities |
|
39.2 |
|
|
44.8 |
|
Other long-term
liabilities |
|
36.8 |
|
|
48.8 |
|
Commitments and
contingencies |
|
|
|
|
EQUITY |
|
|
|
|
Common stock – par value $0.01 per share; 500.0 million shares
authorized; 247.2 million and 242.1 million shares issued,
respectively |
|
2.5 |
|
|
2.4 |
|
Treasury stock – 4.9 million and 4.4 million shares,
respectively |
|
(56.6 |
) |
|
(55.4 |
) |
Additional paid-in capital |
|
1,463.3 |
|
|
1,456.5 |
|
Retained earnings |
|
1,447.8 |
|
|
1,269.6 |
|
Accumulated other comprehensive income (loss) |
|
(12.1 |
) |
|
(12.5 |
) |
Total Common Shareholders' Equity |
|
2,844.9 |
|
|
2,660.6 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
5,524.1 |
|
|
$ |
5,477.8 |
|
QEP RESOURCES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
OPERATING
ACTIVITIES |
|
(in millions) |
Net income (loss) |
|
$ |
(184.4 |
) |
|
$ |
48.8 |
|
|
$ |
183.0 |
|
|
$ |
(67.9 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
149.4 |
|
|
128.0 |
|
|
291.6 |
|
|
251.3 |
|
Deferred income taxes (benefit) |
|
(53.6 |
) |
|
30.2 |
|
|
141.4 |
|
|
(87.7 |
) |
Impairment |
|
— |
|
|
— |
|
|
— |
|
|
5.0 |
|
Non-cash share-based compensation |
|
3.1 |
|
|
3.2 |
|
|
6.4 |
|
|
11.2 |
|
Amortization of debt issuance costs and discounts |
|
1.3 |
|
|
1.4 |
|
|
2.6 |
|
|
2.7 |
|
Net (gain) loss from asset sales, inclusive of restructuring
costs |
|
— |
|
|
(17.8 |
) |
|
(3.7 |
) |
|
(4.6 |
) |
Gain from early extinguishment of debt |
|
(0.4 |
) |
|
— |
|
|
(25.6 |
) |
|
— |
|
Unrealized (gains) losses on marketable securities |
|
(3.3 |
) |
|
(0.8 |
) |
|
— |
|
|
(2.7 |
) |
Unrealized (gains) losses on derivative contracts |
|
219.1 |
|
|
(54.5 |
) |
|
(188.2 |
) |
|
121.3 |
|
Changes in operating assets and liabilities |
|
(58.7 |
) |
|
(21.1 |
) |
|
(183.1 |
) |
|
(32.9 |
) |
Net Cash Provided by (Used in) Operating Activities |
|
72.5 |
|
|
117.4 |
|
|
224.4 |
|
|
195.7 |
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Property acquisitions |
|
(1.1 |
) |
|
(1.2 |
) |
|
(4.1 |
) |
|
(1.8 |
) |
Expenditures for property,
plant and equipment, including exploratory well expense |
|
(81.2 |
) |
|
(152.2 |
) |
|
(245.8 |
) |
|
(316.8 |
) |
Proceeds from disposition of
assets |
|
0.3 |
|
|
49.3 |
|
|
12.9 |
|
|
666.7 |
|
Net Cash Provided by (Used in) Investing Activities |
|
(82.0 |
) |
|
(104.1 |
) |
|
(237.0 |
) |
|
348.1 |
|
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Checks outstanding in excess
of cash balances |
|
(1.8 |
) |
|
(5.0 |
) |
|
(15.9 |
) |
|
(9.3 |
) |
Long-term debt issuance costs
paid |
|
(0.5 |
) |
|
— |
|
|
(0.5 |
) |
|
— |
|
Repurchases of senior
notes |
|
(55.0 |
) |
|
— |
|
|
(127.7 |
) |
|
— |
|
Proceeds from credit
facility |
|
— |
|
|
11.5 |
|
|
— |
|
|
56.0 |
|
Repayments of credit
facility |
|
— |
|
|
(11.5 |
) |
|
— |
|
|
(486.0 |
) |
Treasury stock
repurchases |
|
0.1 |
|
|
(0.5 |
) |
|
(0.7 |
) |
|
(6.3 |
) |
Dividends paid |
|
— |
|
|
— |
|
|
(4.8 |
) |
|
— |
|
Net Cash Provided by (Used in) Financing Activities |
|
(57.2 |
) |
|
(5.5 |
) |
|
(149.6 |
) |
|
(445.6 |
) |
Change in cash, cash
equivalents and restricted cash |
|
(66.7 |
) |
|
7.8 |
|
|
(162.2 |
) |
|
98.2 |
|
Beginning cash, cash
equivalents and restricted cash |
|
100.9 |
|
|
118.5 |
|
|
196.4 |
|
|
28.1 |
|
Ending cash, cash equivalents
and restricted cash |
|
$ |
34.2 |
|
|
$ |
126.3 |
|
|
$ |
34.2 |
|
|
$ |
126.3 |
|
|
|
Production by Region |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
(in Mboe) |
Northern
Region |
|
|
|
|
|
|
|
|
|
|
|
|
Williston Basin |
|
2,515.0 |
|
|
2,962.4 |
|
|
(15 |
)% |
|
5,493.1 |
|
|
6,339.4 |
|
|
(13 |
)% |
Other Northern |
|
4.4 |
|
|
21.0 |
|
|
(79 |
)% |
|
7.0 |
|
|
45.7 |
|
|
(85 |
)% |
Total Northern Region |
|
2,519.4 |
|
|
2,983.4 |
|
|
(16 |
)% |
|
5,500.1 |
|
|
6,385.1 |
|
|
(14 |
)% |
Southern
Region |
|
|
|
|
|
|
|
|
|
|
|
|
Permian Basin |
|
5,453.2 |
|
|
4,552.4 |
|
|
20 |
|
|
10,399.9 |
|
|
8,634.7 |
|
|
20 |
% |
Haynesville/Cotton Valley |
|
— |
|
|
(6.3 |
) |
|
(100 |
)% |
|
— |
|
|
310.9 |
|
|
(100 |
)% |
Other Southern |
|
0.3 |
|
|
5.2 |
|
|
(94 |
)% |
|
3.8 |
|
|
10.3 |
|
|
(63 |
)% |
Total Southern Region |
|
5,453.5 |
|
|
4,551.3 |
|
|
20 |
% |
|
10,403.7 |
|
|
8,955.9 |
|
|
16 |
% |
Total production |
|
7,972.9 |
|
|
7,534.7 |
|
|
6 |
% |
|
15,903.8 |
|
|
15,341.0 |
|
|
4 |
% |
|
|
Total Production |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
Oil and condensate (Mbbl) |
|
5,458.5 |
|
|
5,150.3 |
|
|
6 |
% |
|
10,677.6 |
|
|
10,233.9 |
|
|
4 |
% |
Gas (Bcf) |
|
8.1 |
|
|
7.2 |
|
|
13 |
% |
|
16.2 |
|
|
16.4 |
|
|
(1 |
)% |
NGL (Mbbl) |
|
1,164.6 |
|
|
1,186.0 |
|
|
(2 |
)% |
|
2,533.7 |
|
|
2,364.8 |
|
|
7 |
% |
Total production (Mboe) |
|
7,972.9 |
|
|
7,534.7 |
|
|
6 |
% |
|
15,903.8 |
|
|
15,341.0 |
|
|
4 |
% |
Average daily production (Mboe) |
|
87.6 |
|
|
82.8 |
|
|
6 |
% |
|
87.4 |
|
|
84.8 |
|
|
3 |
% |
|
|
Prices |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
Oil (per
bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
Average field-level price |
|
$ |
21.72 |
|
|
$ |
55.46 |
|
|
|
|
$ |
31.70 |
|
|
$ |
52.30 |
|
|
|
Commodity derivative impact |
|
22.01 |
|
|
(3.11 |
) |
|
|
|
15.24 |
|
|
(1.85 |
) |
|
|
Net realized price |
|
$ |
43.73 |
|
|
$ |
52.35 |
|
|
(16 |
)% |
|
$ |
46.94 |
|
|
$ |
50.45 |
|
|
(7 |
)% |
Gas (per
Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Average field-level price |
|
$ |
1.08 |
|
|
$ |
1.01 |
|
|
|
|
$ |
0.95 |
|
|
$ |
1.84 |
|
|
|
Commodity derivative impact |
|
0.03 |
|
|
— |
|
|
|
|
0.01 |
|
|
(0.18 |
) |
|
|
Net realized price |
|
$ |
1.11 |
|
|
$ |
1.01 |
|
|
10 |
% |
|
$ |
0.96 |
|
|
$ |
1.66 |
|
|
(42 |
)% |
NGL (per
bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
Average field-level price |
|
$ |
5.44 |
|
|
$ |
12.06 |
|
|
|
|
$ |
6.30 |
|
|
$ |
13.18 |
|
|
|
Commodity derivative impact |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
|
Net realized price |
|
$ |
5.44 |
|
|
$ |
12.06 |
|
|
(55 |
)% |
|
$ |
6.30 |
|
|
$ |
13.18 |
|
|
(52 |
)% |
Average net equivalent
price (per Boe) |
|
|
|
|
|
|
|
|
|
|
|
|
Average field-level equivalent price |
|
$ |
16.76 |
|
|
$ |
40.77 |
|
|
|
|
$ |
23.25 |
|
|
$ |
38.89 |
|
|
|
Commodity derivative impact |
|
15.10 |
|
|
(2.13 |
) |
|
|
|
10.25 |
|
|
(1.43 |
) |
|
|
Net realized equivalent price |
|
$ |
31.86 |
|
|
$ |
38.64 |
|
|
(18 |
)% |
|
$ |
33.50 |
|
|
$ |
37.46 |
|
|
(11 |
)% |
|
|
Operating Expenses |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
(in millions) |
Lease operating expense |
|
$ |
28.8 |
|
|
$ |
45.7 |
|
|
(37 |
)% |
|
$ |
69.0 |
|
|
$ |
97.2 |
|
|
(29 |
)% |
Adjusted transportation and processing costs(1) |
|
27.6 |
|
|
22.6 |
|
|
22 |
% |
|
55.4 |
|
|
47.3 |
|
|
17 |
% |
Production and property taxes |
|
9.6 |
|
|
23.6 |
|
|
(59 |
)% |
|
28.3 |
|
|
47.6 |
|
|
(41 |
)% |
Total production costs |
|
$ |
66.0 |
|
|
$ |
91.9 |
|
|
(28 |
)% |
|
$ |
152.7 |
|
|
$ |
192.1 |
|
|
(21 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per Boe) |
Lease operating expense |
|
$ |
3.62 |
|
|
$ |
6.06 |
|
|
(40 |
)% |
|
$ |
4.34 |
|
|
$ |
6.34 |
|
|
(32 |
)% |
Adjusted transportation and processing costs(1) |
|
3.47 |
|
|
3.00 |
|
|
16 |
% |
|
3.48 |
|
|
3.09 |
|
|
13 |
% |
Production and property taxes |
|
1.21 |
|
|
3.13 |
|
|
(61 |
)% |
|
1.78 |
|
|
3.10 |
|
|
(43 |
)% |
Total production costs |
|
$ |
8.30 |
|
|
$ |
12.19 |
|
|
(32 |
)% |
|
$ |
9.60 |
|
|
$ |
12.53 |
|
|
(23 |
)% |
(1) Adjusted transportation and processing costs is a
non-GAAP measure. The definition and reconciliation of adjusted
transportation and processing costs to transportation and
processing costs, as presented, are provided within Non-GAAP
Measures at the end of this release.
QEP RESOURCES, INC.NON-GAAP
MEASURES(Unaudited)
Adjusted EBITDA
This release contains references to the non-GAAP measure of
Adjusted EBITDA. Management defines Adjusted EBITDA as earnings
before interest, income taxes, depreciation, depletion and
amortization (EBITDA), adjusted to exclude changes in fair value of
derivative contracts, exploration expenses, gains and losses from
asset sales, impairment, loss from early extinguishment of debt and
certain other items. Management uses Adjusted EBITDA to evaluate
QEP’s financial performance and trends, make operating decisions,
and allocate resources. Management believes the measure is useful
supplemental information for investors because it eliminates the
impact of certain nonrecurring, non-cash and/or other items that
management does not consider as indicative of QEP’s performance
from period to period. QEP’s Adjusted EBITDA may be determined or
calculated differently than similarly titled measures of other
companies in our industry, which would reduce the usefulness of
this non-GAAP financial measure when comparing our performance to
that of other companies.
Below is a reconciliation of Net Income (Loss) (a GAAP measure)
to Adjusted EBITDA. This non-GAAP measure should be considered by
the reader in addition to, but not instead of, the financial
statements prepared in accordance with GAAP.
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in millions) |
Net income (loss) |
|
$ |
(184.4 |
) |
|
$ |
48.8 |
|
|
$ |
183.0 |
|
|
$ |
(67.9 |
) |
Interest expense |
|
29.8 |
|
|
33.2 |
|
|
61.4 |
|
|
67.2 |
|
Interest and other (income)
expense |
|
(2.6 |
) |
|
(0.9 |
) |
|
— |
|
|
(3.7 |
) |
Income tax provision
(benefit) |
|
(53.6 |
) |
|
29.7 |
|
|
12.7 |
|
|
(82.3 |
) |
Depreciation, depletion and
amortization |
|
149.4 |
|
|
128.0 |
|
|
291.6 |
|
|
251.3 |
|
Unrealized (gains) losses on
derivative contracts |
|
219.1 |
|
|
(54.5 |
) |
|
(188.2 |
) |
|
121.3 |
|
Gain from early extinguishment
of debt |
|
(0.4 |
) |
|
— |
|
|
(25.6 |
) |
|
— |
|
Net (gain) loss from asset
sales, inclusive of restructuring costs |
|
— |
|
|
(17.8 |
) |
|
(3.7 |
) |
|
(4.6 |
) |
Impairment |
|
— |
|
|
— |
|
|
— |
|
|
5.0 |
|
Adjusted EBITDA |
|
$ |
157.3 |
|
|
$ |
166.5 |
|
|
$ |
331.2 |
|
|
$ |
286.3 |
|
Free Cash Flow
This release contains references to non-GAAP measure of Free
Cash Flow.
The Company defines Free Cash Flow as Adjusted EBITDA plus
non-cash share-based compensation less interest expense, excluding
amortization of deferred finance costs, and accrued property, plant
and equipment capital expenditures. Management believes that this
measure is useful to management and investors for analysis of the
Company's ability to repay debt, fund acquisitions or repurchase
stock.
Below is a reconciliation of Net Cash Provided by (Used in)
Operating Activities (the most comparable GAAP measure) to Free
Cash Flow. This non-GAAP measure should be considered by the reader
in addition to, but not instead of, the financial statements
prepared in accordance with GAAP.
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(in millions) |
Cash Flow
Information: |
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Operating Activities |
|
$ |
72.5 |
|
|
$ |
117.4 |
|
|
$ |
224.4 |
|
|
$ |
195.7 |
|
Net Cash Provided by (Used in)
Investing Activities |
|
(82.0 |
) |
|
(104.1 |
) |
|
(237.0 |
) |
|
348.1 |
|
Net Cash Provided by (Used in)
Financing Activities |
|
(57.2 |
) |
|
(5.5 |
) |
|
(149.6 |
) |
|
(445.6 |
) |
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in)
Operating Activities |
|
$ |
72.5 |
|
|
$ |
117.4 |
|
|
$ |
224.4 |
|
|
$ |
195.7 |
|
Amortization of debt issuance
costs and discounts |
|
(1.3 |
) |
|
(1.4 |
) |
|
(2.6 |
) |
|
(2.7 |
) |
Interest expense |
|
29.8 |
|
|
33.2 |
|
|
61.4 |
|
|
67.2 |
|
Unrealized gains (losses) on
marketable securities |
|
3.3 |
|
|
0.8 |
|
|
— |
|
|
2.7 |
|
Interest and other (income)
expense |
|
(2.6 |
) |
|
(0.9 |
) |
|
— |
|
|
(3.7 |
) |
Deferred income taxes |
|
53.6 |
|
|
(30.2 |
) |
|
(141.4 |
) |
|
87.7 |
|
Income tax provision
(benefit) |
|
(53.6 |
) |
|
29.7 |
|
|
12.7 |
|
|
(82.3 |
) |
Non-cash share-based
compensation |
|
(3.1 |
) |
|
(3.2 |
) |
|
(6.4 |
) |
|
(11.2 |
) |
Changes in operating assets
and liabilities |
|
58.7 |
|
|
21.1 |
|
|
183.1 |
|
|
32.9 |
|
Adjusted EBITDA |
|
157.3 |
|
|
166.5 |
|
|
331.2 |
|
|
286.3 |
|
Non-cash share-based
compensation |
|
3.1 |
|
|
3.2 |
|
|
6.4 |
|
|
11.2 |
|
Interest expense, excluding
amortization of debt issuance costs and discounts |
|
(28.5 |
) |
|
(31.8 |
) |
|
(58.8 |
) |
|
(64.5 |
) |
Accrued property, plant and
equipment capital expenditures |
|
(36.6 |
) |
|
(169.9 |
) |
|
(215.1 |
) |
|
(337.1 |
) |
Free Cash Flow |
|
$ |
95.3 |
|
|
$ |
(32.0 |
) |
|
$ |
63.7 |
|
|
$ |
(104.1 |
) |
This release includes a Free Cash Flow estimate for 2020. We are
unable, however, to provide a quantitative reconciliation of the
forward-looking non-GAAP measure to its most directly comparable
forward-looking GAAP measure because management cannot reliably
quantify certain of the necessary components of such
forward-looking GAAP measure. The reconciling items in future
periods could be significant.
Adjusted Net Income (Loss)
This release also contains references to the non-GAAP measure of
Adjusted Net Income (Loss). Management defines Adjusted Net Income
(Loss) as earnings excluding changes in fair value of derivative
contracts, gains and losses from asset sales, impairment and
certain other items. Management uses Adjusted Net Income (Loss) to
evaluate QEP’s financial performance and trends, make operating
decisions, and allocate resources. Management believes the measure
is useful supplemental information for investors because it
eliminates the impact of certain nonrecurring, non-cash and/or
other items that management does not consider as indicative of
QEP’s performance from period to period. QEP’s Adjusted Net Income
(Loss) may be determined or calculated differently than similarly
titled measures of other companies in our industry, which would
reduce the usefulness of this non-GAAP financial measure when
comparing our performance to that of other companies.
Below is a reconciliation of Net Income (Loss) (the most
comparable GAAP measure) to Adjusted Net Income (Loss). This
non-GAAP measure should be considered by the reader in addition to,
but not instead of, the financial measure prepared in accordance
with GAAP.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) |
|
$ |
(184.4 |
) |
|
$ |
48.8 |
|
|
$ |
183.0 |
|
|
$ |
(67.9 |
) |
Adjustments to net income
(loss) |
|
|
|
|
|
|
|
|
Unrealized (gains) losses on
derivative contracts |
|
219.1 |
|
|
(54.5 |
) |
|
(188.2 |
) |
|
121.3 |
|
Income taxes on unrealized
(gains) losses on derivative contracts(1) |
|
(49.1 |
) |
|
12.2 |
|
|
12.2 |
|
|
(66.5 |
) |
Net (gain) loss from asset
sales, inclusive of restructuring costs |
|
— |
|
|
(17.8 |
) |
|
(3.7 |
) |
|
(4.6 |
) |
Income taxes on net (gain)
loss from asset sales, inclusive of restructuring costs(1) |
|
— |
|
|
4.0 |
|
|
0.2 |
|
|
2.5 |
|
Impairment |
|
— |
|
|
— |
|
|
— |
|
|
5.0 |
|
Income taxes on impairment(1) |
|
— |
|
|
— |
|
|
— |
|
|
(2.7 |
) |
|
|
170.0 |
|
|
(56.1 |
) |
|
(179.5 |
) |
|
55.0 |
|
|
|
(14.4 |
) |
|
(7.3 |
) |
|
3.5 |
|
|
(12.9 |
) |
|
|
|
|
|
|
|
|
|
Earnings (Loss) per Common
Share |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
(0.76 |
) |
|
$ |
0.20 |
|
|
$ |
0.76 |
|
|
$ |
(0.29 |
) |
Diluted after-tax adjustments
to net income (loss) per share |
|
0.70 |
|
|
(0.24 |
) |
|
(0.75 |
) |
|
0.23 |
|
Diluted Adjusted Net Income
per share |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
Diluted |
|
242.3 |
|
|
238.0 |
|
|
240.7 |
|
|
237.5 |
|
(1) Income tax impact of adjustments is
calculated using QEP’s statutory rate of 22.4% for the three months
ended June 30, 2020 and 2019, and QEP's effective tax rate of
6.5% and 54.8% for the six months ended June 30, 2020
and 2019, respectively.
Adjusted Transportation and Processing
Costs
This release contains references to the non-GAAP measure of
Adjusted Transportation and Processing Costs. Management defines
Adjusted Transportation and Processing Costs as transportation and
processing costs presented on the Condensed Consolidated Statements
of Operations and transportation and processing costs that are
included as part of "Oil and condensate, gas and NGL sales" on the
Condensed Consolidated Statements of Operations. These costs are
added together to reflect the total transportation and processing
costs associated with QEP's production. Management believes that
Adjusted Transportation and Processing Costs is useful supplemental
information for investors as this non-GAAP measure, collectively
with the Company’s lease operating expenses and production and
severance taxes, more completely reflect the Company’s total
production costs required to operate the wells for the period.
Below is a reconciliation of Adjusted Transportation and
Processing Costs to transportation and processing costs as
presented on the Condensed Consolidated Statements of Operations
(the most comparable GAAP measure). This non-GAAP measure should be
considered by the reader in addition to but not instead of, the
financial statements prepared in accordance with GAAP.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
(in millions) |
Transportation and processing costs, as presented |
|
$ |
12.3 |
|
|
$ |
9.9 |
|
|
$ |
2.4 |
|
|
$ |
25.8 |
|
|
$ |
20.8 |
|
|
$ |
5.0 |
|
Transportation and processing
costs deducted from oil and condensate, gas and NGL sales |
|
15.3 |
|
|
12.7 |
|
|
2.6 |
|
|
29.6 |
|
|
26.5 |
|
|
3.1 |
|
Adjusted transportation and processing costs |
|
$ |
27.6 |
|
|
$ |
22.6 |
|
|
$ |
5.0 |
|
|
$ |
55.4 |
|
|
$ |
47.3 |
|
|
$ |
8.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per Boe) |
Transportation and processing
costs, as presented |
|
$ |
1.55 |
|
|
$ |
1.31 |
|
|
$ |
0.24 |
|
|
$ |
1.62 |
|
|
$ |
1.36 |
|
|
$ |
0.26 |
|
Transportation and processing
costs deducted from oil and condensate, gas and NGL sales |
|
1.92 |
|
|
1.69 |
|
|
0.23 |
|
|
1.86 |
|
|
1.73 |
|
|
0.13 |
|
Adjusted transportation and processing costs |
|
$ |
3.47 |
|
|
$ |
3.00 |
|
|
$ |
0.47 |
|
|
$ |
3.48 |
|
|
$ |
3.09 |
|
|
$ |
0.39 |
|
This release includes a 2020 estimate for Adjusted
Transportation and processing costs. We are unable, however, to
provide a quantitative reconciliation of the forward-looking
non-GAAP measure to its most directly comparable forward-looking
GAAP measure because management cannot reliably quantify certain of
the necessary components of such forward-looking GAAP measure. The
reconciling items in future periods could be significant.
Grafico Azioni Qep Resources (NYSE:QEP)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Qep Resources (NYSE:QEP)
Storico
Da Giu 2023 a Giu 2024