QEP Resources, Inc.

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SEC Filings

10-Q
QEP RESOURCES, INC. filed this Form 10-Q on 04/25/2018
Entire Document
 


Cash Flow from Operating Activities

Cash flows from operating activities are primarily affected by oil and condensate, gas and NGL production volumes and commodity prices (including the effects of settlements of the Company's derivative contracts) and by changes in working capital. QEP typically enters into commodity derivative transactions covering a substantial, but varying, portion of its anticipated future oil and gas production for the next 12 to 24 months.

Net cash provided by (used in) operating activities is presented below:
 
Three Months Ended March 31,
 
2018
 
2017
 
Change
 
(in millions)
Net income (loss)
$
(53.6
)
 
$
76.9

 
$
(130.5
)
Non-cash adjustments to net income (loss)
202.2

 
67.3

 
134.9

Changes in operating assets and liabilities
11.8

 
5.7

 
6.1

Net cash provided by (used in) operating activities
$
160.4

 
$
149.9

 
$
10.5


Net cash provided by operating activities was $160.4 million during the first three months of 2018, which included $53.6 million of net loss, $202.2 million of non-cash adjustments to the net loss and $11.8 million in changes in operating assets and liabilities. Non-cash adjustments to the net loss primarily included DD&A expense of $196.5 million, $11.2 million of share-based compensation expense and unrealized losses on derivative contracts of $10.0 million, partially offset by $14.1 million of deferred income taxes and a net gain on asset sales of $3.5 million. The increase in changes in operating assets and liabilities primarily resulted from a decrease in accounts receivable of $11.6 million, an increase in interest payable of $7.4 million and a decrease in prepayments of $1.3 million, partially offset by a decrease in accounts payable and accrued expenses of $10.4 million.

Net cash provided by operating activities was $149.9 million during the first three months of 2017, which included $76.9 million of net income, $67.3 million of non-cash adjustments to net income and a $5.7 million increase in operating assets and liabilities. Non-cash adjustments to net income primarily included DD&A expense of $191.8 million and $45.6 million of deferred income taxes, partially offset by unrealized gains on derivative contracts of $177.3 million. The increase in changes in operating assets and liabilities primarily resulted from a decrease in accounts receivable of $19.5 million, partially offset by a decrease in accounts payable and accrued expenses of $10.8 million and a decrease in the ARO liability of $0.9 million.

Cash Flow from Investing Activities

A comparison of capital expenditures for the first three quarters of 2018 and 2017, are presented in the table below:
 
Three Months Ended March 31,
 
2018
 
2017
 
Change
 
(in millions)
Property acquisitions(1)
$
36.2

 
$
68.2

 
$
(32.0
)
Property, plant and equipment capital expenditures
418.8

 
214.3

 
204.5

Total accrued capital expenditures
455.0

 
282.5

 
172.5

Change in accruals and other non-cash adjustments
(48.1
)
 
(37.0
)
 
(11.1
)
Total cash capital expenditures
$
406.9

 
$
245.5

 
$
161.4

 ____________________________
(1) 
Excludes acquisition deposits held in escrow of $0.2 million for the three months ended March 31, 2018.


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