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QEP Resources (QEP) Posts Narrower-than-Expected Loss in Q1
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Domestic energy explorer QEP Resources, Inc. reported loss per share – excluding special items – of 14 cents, narrower than the Zacks Consensus Estimate of a loss of 21 cents. Notably, the company reported adjusted loss of 53 cents per share in the year-ago quarter. The improved results were primarily driven by higher realized prices, decrease in impairment expenses and increase in the realized and unrealized gain on derivatives.
Quarterly revenues of $420 million beat the Zacks Consensus Estimate of $401 million. Further, revenues increased 61% from first-quarter 2016.
Volume Analysis
QEP Resources’ overall production in the quarter declined 5% year over year to 13,090.3 million barrels of oil equivalent (Mboe). Natural gas volumes declined 3% year over year to 42.3 Bcf, whereas liquid volumes declined by 7.7 % significantly to 6,038.1 thousand barrels.
A decrease in production from the Pinedale, Williston, Permian and the Uinta Basin resulted in the downside. Timing of completions in the Permian Basin, owing to the adoption of new tank-style completion method affected production.
Notably, QEP Resources is also contemplating a divestiture of Pinedale assets as part of its portfolio optimization process.
Realized Prices
QEP Resources’ average realized natural gas price in the quarter was $2.84 per thousand cubic feet, up 15% from the year-ago quarter price of $2.46. Moreover, average oil price realization improved 32% to $46.92 per barrel. Overall net realized equivalent price averaged $28.19 per billion of oil equivalent in the quarter, up 27% year over year.
Operating Expenses and Capital Expenses
Total operating expenses for the quarter decreased to $425.3 million from $1640.8 million a year ago, reflecting a massive reduction of 74%. The reduction is primarily attributed to decrease in impairment charges along with general and administrative expenses.
Capital investment, excluding acquisitions (on an accrual basis), was $214.3 million for the reported quarter compared with $157.0 million for the prior-year quarter.
Balance Sheet
As of Mar 31, 2017, QEP Resources had cash and cash equivalents of $338.4 million. The company’s long-term debt (including current portion) was $2,022.4 million, which represents a debt-to-capitalization ratio of 36%.
QEP Resources, Inc. Price, Consensus and EPS Surprise
Based in Denver, QEP Resources, through its subsidiaries, operates as a natural gas and crude oil exploration and production company in the United States. The company, under Zacks U.S. Oil and Gas Production & Exploration industry, currently carries a Zacks Rank #3 (Hold).
Better-ranked players from the same industry include Penn Virginia Corporation W&T Offshore, Inc (WTI - Free Report) and Rice Midstream Partners LP . While Penn Virginia sports a Zacks Rank #1 (Strong Buy), W&T Offshore and Rice Midstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Penn Virginia posted an average positive earnings surprise of 36.67%.
W&T Offshore reported a positive earnings surprise of 50.53% in the preceding four quarters.
Rice Midstream posted a positive earnings surprise of 70.93% in the trailing four quarters.
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QEP Resources (QEP) Posts Narrower-than-Expected Loss in Q1
Domestic energy explorer QEP Resources, Inc. reported loss per share – excluding special items – of 14 cents, narrower than the Zacks Consensus Estimate of a loss of 21 cents. Notably, the company reported adjusted loss of 53 cents per share in the year-ago quarter. The improved results were primarily driven by higher realized prices, decrease in impairment expenses and increase in the realized and unrealized gain on derivatives.
Quarterly revenues of $420 million beat the Zacks Consensus Estimate of $401 million. Further, revenues increased 61% from first-quarter 2016.
Volume Analysis
QEP Resources’ overall production in the quarter declined 5% year over year to 13,090.3 million barrels of oil equivalent (Mboe). Natural gas volumes declined 3% year over year to 42.3 Bcf, whereas liquid volumes declined by 7.7 % significantly to 6,038.1 thousand barrels.
A decrease in production from the Pinedale, Williston, Permian and the Uinta Basin resulted in the downside. Timing of completions in the Permian Basin, owing to the adoption of new tank-style completion method affected production.
Notably, QEP Resources is also contemplating a divestiture of Pinedale assets as part of its portfolio optimization process.
Realized Prices
QEP Resources’ average realized natural gas price in the quarter was $2.84 per thousand cubic feet, up 15% from the year-ago quarter price of $2.46. Moreover, average oil price realization improved 32% to $46.92 per barrel. Overall net realized equivalent price averaged $28.19 per billion of oil equivalent in the quarter, up 27% year over year.
Operating Expenses and Capital Expenses
Total operating expenses for the quarter decreased to $425.3 million from $1640.8 million a year ago, reflecting a massive reduction of 74%. The reduction is primarily attributed to decrease in impairment charges along with general and administrative expenses.
Capital investment, excluding acquisitions (on an accrual basis), was $214.3 million for the reported quarter compared with $157.0 million for the prior-year quarter.
Balance Sheet
As of Mar 31, 2017, QEP Resources had cash and cash equivalents of $338.4 million. The company’s long-term debt (including current portion) was $2,022.4 million, which represents a debt-to-capitalization ratio of 36%.
QEP Resources, Inc. Price, Consensus and EPS Surprise
QEP Resources, Inc. Price, Consensus and EPS Surprise | QEP Resources, Inc. Quote
Zacks Rank & Key Picks
Based in Denver, QEP Resources, through its subsidiaries, operates as a natural gas and crude oil exploration and production company in the United States. The company, under Zacks U.S. Oil and Gas Production & Exploration industry, currently carries a Zacks Rank #3 (Hold).
Better-ranked players from the same industry include Penn Virginia Corporation W&T Offshore, Inc (WTI - Free Report) and Rice Midstream Partners LP . While Penn Virginia sports a Zacks Rank #1 (Strong Buy), W&T Offshore and Rice Midstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Penn Virginia posted an average positive earnings surprise of 36.67%.
W&T Offshore reported a positive earnings surprise of 50.53% in the preceding four quarters.
Rice Midstream posted a positive earnings surprise of 70.93% in the trailing four quarters.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>