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QEP Resources, Inc.

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QEP Resources actively works to increase its oil development drilling inventory through acquisitions, swaps and organic growth opportunities. The company has shifted its focus to the prolific Permian Basin. Moreover, the company maintains a very competitive cost structure, which contributes to the consistency of its growth and returns. Additionally, QEP Resources has an active stock buyback program, which increases shareholders' value. However, cost inflation in the Permian Basin is a concern for the company. Also the shortage in takeaway capacity in the basin can impact QEP Resources’ profitability. Moreover, the company has a weak balance sheet. Therefore, the stock warrants a cautious stance.

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