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
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.
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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
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.
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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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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