QEP Resources, Inc.

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SEC Filings

10-Q
QEP RESOURCES, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 


The effects of the change in fair value and settlement of QEP's derivative contracts recorded in "Realized and unrealized gains (losses) on derivative contracts" on the Condensed Consolidated Statements of Operations are summarized in the following table:
 
Three Months Ended
 
Nine Months Ended
Derivative contracts
September 30,
 
September 30,
2018(1)
 
2017(2)
 
2018(1)
 
2017(2)
Realized gains (losses) on commodity derivative contracts
(in millions)
Production
 
 
 
 
 
 
 
Oil derivative contracts
$
(41.7
)
 
$
12.1

 
$
(138.0
)
 
$
21.6

Gas derivative contracts
3.3

 
(0.4
)
 
10.6

 
(19.7
)
Gas Storage
 
 
 
 
 
 
 
Gas derivative contracts

 

 
0.3

 
(0.2
)
Realized gains (losses) on commodity derivative contracts
(38.4
)
 
11.7

 
(127.1
)
 
1.7

Unrealized gains (losses) on commodity derivative contracts
 
 
 
 
 
 
 
Production
 
 
 
 
 
 
 
Oil derivative contracts
(60.6
)
 
(86.1
)
 
(88.1
)
 
88.7

Gas derivative contracts
(3.1
)
 

 
(18.9
)
 
100.5

Gas Storage
 
 
 
 
 
 
 
Gas derivative contracts

 

 
(0.3
)
 
2.3

Unrealized gains (losses) on commodity derivative contracts
(63.7
)
 
(86.1
)
 
(107.3
)
 
191.5

Total realized and unrealized gains (losses) on commodity derivative contracts related to production and storage
$
(102.1
)
 
$
(74.4
)
 
$
(234.4
)
 
$
193.2

 
 
 
 
 
 
 
 
Derivatives associated with divestitures
 
 
 
 
 
 
 
Unrealized gains (losses) on commodity derivative contracts
 
 
 
 
 
 
 
Production
 
 
 
 
 
 
 
Oil derivative contracts
$
(2.7
)
 
$
(1.3
)
 
$
(2.7
)
 
$
(1.3
)
Gas derivative contracts

 
(23.5
)
 

 
(23.5
)
NGL derivative contracts
(3.2
)
 
(5.1
)
 
(3.2
)
 
(5.1
)
Unrealized gains (losses) on commodity derivative contracts related to divestitures
$
(5.9
)
 
$
(29.9
)
 
$
(5.9
)
 
$
(29.9
)
 
 
 
 
 
 
 
 
Total realized and unrealized gains (losses) on commodity derivative contracts
$
(108.0
)
 
$
(104.3
)
 
$
(240.3
)
 
$
163.3

_______________________
(1) 
The unrealized gains (losses) on commodity derivative contracts related to the Uinta Basin Divestiture are comprised of derivatives entered into in conjunction with the execution of the Uinta Basin purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in September 2018. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Uinta Basin Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the Condensed Consolidated Statements of Operations.
(2) 
The unrealized gains (losses) on commodity derivative contracts related to the Pinedale Divestiture are comprised of derivatives entered into in conjunction with the execution of the Pinedale purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in September 2017. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Pinedale Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the Condensed Consolidated Statements of Operations.


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