QEP Resources Reports 2011 EBITDA of $1.39 Billion and Production of 275.2 Bcfe

Thursday, Feb 23, 2012

DENVER, Feb. 22, 2012 /PRNewswire/ -- QEP Resources (NYSE: QEP) reported adjusted EBITDA (a non-GAAP measure) of $1,386.6 million for 2011 compared to $1,140.5 million in 2010, a 22% increase.  Factors driving QEP's results included 20% higher net production and 54% higher oil and NGL production from QEP Energy, increased gathering and processing margins at QEP Field Services, and higher net realized crude oil and NGL prices which more than offset net realized natural gas prices that were 11% lower than in the previous year at QEP Energy.  Adjusted EBITDA in the fourth quarter of 2011 was $390.5 million compared to $298.5 million a year earlier, a 31% increase.

 QEP Resources net income from continuing operations for 2011 was $267.2 million or $1.50 per diluted share, compared to $283.0 million or $1.60 per diluted share in 2010.  QEP Resources had a net loss from continuing operations in the fourth quarter of 2011 of $0.3 million or no earnings per diluted share, compared to net income of $65.0 million or $0.37 per diluted share a year earlier.  The net loss in the fourth quarter of 2011 was attributed to a non-cash price-related impairment charge of $195.2 million on some of its mature, dry gas, and higher cost properties in both the Northern and Southern Regions.  See Financial and Operating Results for additional information.

Excluding changes in unrealized gains and losses on natural gas basis-only swaps, gains and losses on asset sales, non-cash price-related impairment charge, separation costs and losses on early extinguishment of debt, QEP Resources adjusted net income from continuing operations (a non-GAAP measure) was $316.2 million or $1.77 per diluted share in 2011 compared to $217.8 million or $1.23 per diluted share in 2010.  Similarly adjusted fourth quarter 2011 net income from continuing operations was$104.6 million or $0.58 per diluted share compared to net income of $44.8 million or $0.25 per diluted share in the year earlier period.

 "QEP Resources completed another successful year in 2011," said Chuck Stanley, President and CEO.  "QEP Energy production was up 20% from last year, driven by strong results from the Pinedale Anticline and Haynesville Shale plays, combined with significant contributions from new wells in our Woodford"Cana" Shale and Bakken/Three Forks plays.  With 68% of our 2011 drilling capital directed to oil and liquids-rich gas plays, we grew oil and NGL production 54% and year-end proved crude oil and NGL reserves 107% compared to 2010.  Crude oil and NGL production accounted for 29% of QEP Energy net realized production revenues for the year and we expect that share to grow as we allocate more of our 2012 QEP Energy capital to our higher-margin oil and liquids-rich gas resource plays.  Our midstream business, QEP Field Services, had an excellent year, thanks to a combination of great execution coupled with strong gas processing margins.  Our new Blacks Fork II plant continues to perform well, and the midstream team is now focused on new projects to drive additional growth in 2012 and beyond," Stanley added.  

SOURCE QEP Resources, Inc.

To access over 2,500 of the latest oil projects from across the world visit Projects OGP for free trial today