QEP Resources, Inc.

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SEC Filings

PRE 14A
QEP RESOURCES, INC. filed this Form PRE 14A on 03/09/2018
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COMPENSATION DISCUSSION AND ANALYSIS

This section describes the objectives and elements of the executive compensation programs for our Named Executive Officers (NEOs). Our NEOs include our principal executive officer, our principal financial officer, our three other most highly compensated Section 16 officers, as well as one former officer that would have been one of the three other most highly compensated Section 16 officers had he still been employed by QEP at year end. Our NEOs for 2017 are:

Charles B. Stanley, Chairman, President and Chief Executive Officer (CEO)
Richard J. Doleshek, Executive Vice President, Chief Financial Officer (CFO)
Jim E. Torgerson, Executive Vice President, QEP Energy
Christopher K. Woosley, Senior Vice President and General Counsel
Margo D. Fiala1, Vice President, Human Resources
Matthew T. Thompson, Former Vice President, Energy (departed September 15, 2017)

1Ms. Fiala will no longer be employed by the Company effective March 31, 2018.

Executive Summary

Company Overview, 2017 Business Highlights and 2018 Strategic Initiatives


QEP is an independent crude oil and natural gas exploration and production (E&P) company. As a result, our earnings, cash flows, asset values and stock price are significantly influenced by the cyclical and volatile nature of commodity prices for crude oil, natural gas, and natural gas liquids. Since our spin-off from Questar in 2010, we've been on a deliberate path to increase oil as a percentage of total production and proved reserves, as well as simplify our asset portfolio. Through a series of acquisitions in two world-class oil provinces, first in the Williston basin and then in the Permian, and through divestiture of noncore gas weighted assets in the Midcontinent and the Rockies, we have successfully increased liquids from less than 15% of total production in 2011 to almost 50% in 2017.

2017 Business Highlights

Our Company delivered significant results and accomplishments in 2017:

Generated net income of $269.3 million, or $1.12 per diluted share;
Recognized realized oil prices that were $6.07 per bbl, or 14% higher compared to 2016;
Delivered oil equivalent production of 53.1 MMboe;
Delivered crude oil production of 19.6 MMbbl, including a record 6.1 MMbbl in the Permian Basin;
Delivered natural gas production of 168.9 Bcf, including 72.9 Bcf in the Haynesville/Cotton Valley;
Reported record year-end total proved reserves of 684.7 MMboe, including record proved crude oil reserves of 320.5 MMbbl;
Divested Pinedale Anticline natural gas asset for net cash proceeds of $718.2 million;
Acquired approximately 15,100 net acres in the core of the northern Midland Basin;
Expanded our successful refracturing program in Haynesville/Cotton Valley and began refracturing wells in the Williston Basin; and
Issued $500.0 million of senior notes and repaid $445.7 million of senior notes, which were due in 2018, 2020 and 2021; paid fees and expenses associated with the repayment and used the remainder for general corporate purposes.

Our accomplishments in 2017 were significant, including the divestiture of our Pinedale Anticline natural gas asset and expansion of our tier one acreage position in the Permian Basin via a tax efficient acquisition. We continued to accelerate our development activity while actively enhancing our drilling and completion designs in the Permian Basin. We also had success with our refrac programs in both the Haynesville and the Williston Basin and we successfully completed our first long-lateral horizontal well utilizing state-of-the-art completion techniques in the Haynesville.

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