QEP Resources, Inc.

    Print Page | Close Window

SEC Filings

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


Below is a reconciliation of net income (loss) (a GAAP measure) to Adjusted EBITDA. 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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Net income (loss)
$
7.3

 
$
(3.3
)
 
$
(382.3
)
 
$
119.0

Interest expense
38.7

 
34.4

 
111.9

 
103.1

Interest and other (income) expense
0.3

 
(0.1
)
 
4.1

 
(2.5
)
Income tax provision (benefit)
2.5

 
(3.2
)
 
(117.6
)
 
69.7

Depreciation, depletion and amortization
234.9

 
176.9

 
673.6

 
560.2

Unrealized (gains) losses on derivative contracts
69.6

 
116.0

 
113.2

 
(161.6
)
Exploration expenses

 
21.3

 
0.1

 
21.7

Net (gain) loss from asset sales, inclusive of restructuring costs
(27.1
)
 
(185.4
)
 
(26.7
)
 
(205.2
)
Impairment

 
28.3

 
404.4

 
28.4

Other(1)

 
8.2

 

 
8.2

Adjusted EBITDA
$
326.2

 
$
193.1

 
$
780.7

 
$
541.0

____________________________
(1) 
Reflects legal expenses and loss contingencies incurred during the three and nine months ended September 30, 2017. The Company believes that these amounts do not reflect expected future operating performance or provide meaningful comparisons to past operating performance and therefore has excluded these amounts from the calculation of Adjusted EBITDA.

In the third quarter of 2018, Adjusted EBITDA increased to $326.2 million compared to $193.1 million in the third quarter of 2017, primarily due to a 38% increase in oil and condensate production, mainly in the Permian Basin, an 18% increase in average net realized oil prices and a 38% increase in gas production in Haynesville/Cotton Valley, partially offset by a $50.1 million increase in realized derivative losses, a $29.0 million decrease in gas sales primarily due to the Pinedale Divestiture and a 1% reduction in average net realized gas price.

In the first three quarters of 2018, Adjusted EBITDA increased to $780.7 million compared to $541.0 million in the first three quarters of 2017, primarily due to a 26% increase in oil and condensate production, mainly in the Permian Basin, a 15% increase in average net realized oil prices, a 67% increase in gas production in Haynesville/Cotton Valley and a $128.8 million decrease in realized derivative losses, partially offset by a $97.9 million decrease in gas sales primarily due to the Pinedale Divestiture.


37