QEP Resources, Inc.

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SEC Filings

10-Q
QEP RESOURCES, INC. filed this Form 10-Q on 07/25/2018
Entire Document
 


The following table presents the number of operated wells in the process of being drilled or waiting on completion at June 30, 2018 and operated wells completed and turned to sales (put on production) for the six months ended June 30, 2018:
 
Permian Basin
 
Williston Basin
 
Haynesville/Cotton Valley
 
Uinta Basin
 
As of June 30, 2018
 
Gross
 
Net
 
Gross
 
Net
 
Gross
 
Net
 
Gross
 
Net
Well Progress
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Drilling
25

 
24.8

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At total depth - under drilling rig
2

 
2.0

 

 

 

 

 

 

Waiting to be completed
12

 
11.7

 

 

 

 

 

 

Undergoing completion
5

 
4.8

 

 

 

 

 

 

Completed, awaiting production
8

 
8.0

 

 

 
1

 
1.0

 

 

Waiting on completion
27

 
26.5

 

 

 
1

 
1.0

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Put on production
68

 
67.1

 
11

 
10.1

 
3

 
3.0

 
2

 
2.0


RESULTS OF OPERATIONS

Net Income

QEP generated a net loss during the second quarter of 2018 of $336.0 million, or $1.42 per diluted share, compared to net income of $45.4 million, or $0.19 per diluted share, in the second quarter of 2017. QEP's net loss was primarily due to a $403.7 million increase in impairment expense and a $185.8 million increase in unrealized and realized derivative losses. These increases to the net loss were partially offset by a $192.5 million increase in oil and condensate sales due to a 35% increase in oil and condensate production and a 16% increase in average net realized oil prices in the second quarter of 2018 compared to the second quarter of 2017.

QEP generated a net loss during the first half of 2018 of $389.6 million or $1.63 per diluted share, compared to net income of $122.3 million or $0.51 per diluted share, in the first half of 2017. QEP's net loss was primarily due to a $404.3 million increase in impairment expense and a $399.9 million increase in unrealized and realized derivative losses. These increases to the net loss were partially offset by a $271.5 million increase in oil and condensate sales due to a 21% increase in oil and condensate production and a 13% increase in average net realized oil prices in the first half of 2018 compared to the first half of 2017.

Adjusted EBITDA (Non-GAAP)

Management defines Adjusted EBITDA (a non-GAAP measure) 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 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.


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