QEP Resources, Inc.

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SEC Filings

8-K
QEP RESOURCES, INC. filed this Form 8-K on 07/25/2018
Entire Document
 


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 operating costs associated with QEP's production. Management believes that this non-GAAP measure is useful supplemental information for investors as it reflects the total production costs required to operate the wells for the period and is a more comparable measure to the operating costs of its peers.

Below is a reconciliation of adjusted transportation and processing costs to transportation and processing costs as presented on the Condensed Consolidated Statements of Operations (a 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,
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
 
(in millions)
Adjusted transportation and processing costs
$
43.6

 
$
72.2

 
$
(28.6
)
 
$
90.3

 
$
142.4

 
$
(52.1
)
Transportation and processing costs deducted from oil and condensate, gas and NGL sales
(12.4
)
 

 
(12.4
)
 
(25.1
)
 

 
(25.1
)
Transportation and processing costs, as presented
$
31.2

 
$
72.2

 
$
(41.0
)
 
$
65.2

 
$
142.4

 
$
(77.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(per Boe)
Adjusted transportation and processing costs
$
3.09

 
$
5.21

 
$
(2.12
)
 
$
3.49

 
$
5.28

 
$
(1.79
)
Transportation and processing costs deducted from oil and condensate, gas and NGL sales
(0.88
)
 

 
(0.88
)
 
(0.97
)
 

 
(0.97
)
Transportation and processing costs, as presented
$
2.21

 
$
5.21

 
$
(3.00
)
 
$
2.52

 
$
5.28

 
$
(2.76
)


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