It has been about a month since the last earnings report for QEP Resources, Inc. . Shares have lost about 18.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
QEP Resources reported loss per share – excluding special items – of $0.15, narrower than the Zacks Consensus Estimate of a loss of $0.22. Notably, the company had reported adjusted loss of $0.01 per share in the year-ago quarter.
Quarterly revenues of $400 million beat the Zacks Consensus Estimate of $382 million but decreased 14.5% from the fourth-quarter 2015 level.
Volume Analysis
QEP Resources’ overall production in the quarter dipped 2% year over year to 13,675.7 million barrels of oil equivalent (Mboe). A decrease in production from the Pinedale and the Uinta Basin resulted in the downside.
Natural gas volumes declined 5% year over year to 43.9 Bcf, whereas liquid volumes improved significantly to 6,358.8 thousand barrels.
Realized Prices
QEP Resources’ average realized natural gas price in the quarter was $2.81 per thousand cubic feet, down 8% from the year-ago quarter price of $3.04. Moreover, average oil price realization decreased nearly 23% to $45.58 per barrel.
Overall net realized equivalent price averaged $27.31 per billion of oil equivalent in the quarter, down 17% year over year.
Operating Expense
Total operating expenses for the quarter decreased to $436.6 million from $610.6 million a year ago.
Balance Sheet
As of Dec 31, 2016, QEP Resources had cash and cash equivalents of $443.8 million. The company’s long-term debt (including current portion) was $2,020.9 million, which represents a debt-to-capitalization ratio of 36.6%.
Guidance
QEP Resources’ 2017 production guidance lies in the range of 57.0–60.0 MMboe.
The projection for 2017 capital spending is in the $950–$1,000 million band.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter. While looking back an additional 30 days, we can see even more upward momentum. There have been two upward revisions in the last two months.
VGM Scores
At this time, QEP Resources' stock has a subpar Growth Score of 'D', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is QEP Resources (QEP) Down 18.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for QEP Resources, Inc. . Shares have lost about 18.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
QEP Resources reported loss per share – excluding special items – of $0.15, narrower than the Zacks Consensus Estimate of a loss of $0.22. Notably, the company had reported adjusted loss of $0.01 per share in the year-ago quarter.
Quarterly revenues of $400 million beat the Zacks Consensus Estimate of $382 million but decreased 14.5% from the fourth-quarter 2015 level.
Volume Analysis
QEP Resources’ overall production in the quarter dipped 2% year over year to 13,675.7 million barrels of oil equivalent (Mboe). A decrease in production from the Pinedale and the Uinta Basin resulted in the downside.
Natural gas volumes declined 5% year over year to 43.9 Bcf, whereas liquid volumes improved significantly to 6,358.8 thousand barrels.
Realized Prices
QEP Resources’ average realized natural gas price in the quarter was $2.81 per thousand cubic feet, down 8% from the year-ago quarter price of $3.04. Moreover, average oil price realization decreased nearly 23% to $45.58 per barrel.
Overall net realized equivalent price averaged $27.31 per billion of oil equivalent in the quarter, down 17% year over year.
Operating Expense
Total operating expenses for the quarter decreased to $436.6 million from $610.6 million a year ago.
Balance Sheet
As of Dec 31, 2016, QEP Resources had cash and cash equivalents of $443.8 million. The company’s long-term debt (including current portion) was $2,020.9 million, which represents a debt-to-capitalization ratio of 36.6%.
Guidance
QEP Resources’ 2017 production guidance lies in the range of 57.0–60.0 MMboe.
The projection for 2017 capital spending is in the $950–$1,000 million band.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter. While looking back an additional 30 days, we can see even more upward momentum. There have been two upward revisions in the last two months.
QEP Resources, Inc. Price and Consensus
QEP Resources, Inc. Price and Consensus | QEP Resources, Inc. Quote
VGM Scores
At this time, QEP Resources' stock has a subpar Growth Score of 'D', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.