Resale Margin and Storage Activity
QEP purchases and resells oil and gas primarily to mitigate losses on unutilized capacity related to firm transportation commitments and storage activities. The following table is a summary of QEP's financial results from its resale activities.
Three Months Ended March 31,
Purchased oil and gas sales
Purchased oil and gas expense
Realized gains (losses) on gas storage derivative contracts
Purchased oil and gas sales and expense decreased during the first quarter of 2018 compared to first quarter of 2017, due to lower resale volumes, as a result of increased production in areas where the Company has oil and gas transportation commitments.