QEP Reports Q4 and FY2012 Results

QEP Resources, Inc. today reported estimated fourth quarter and full year 2012 financial and operating results. The Company reported a net loss during the fourth quarter 2012 of $23.1 million, or $0.13 per diluted share, compared to a net loss of $0.3 million and no earnings per diluted share, in the fourth quarter 2011. For the year ended December 31, 2012, QEP Resources reported net income of $128.3 million, or $0.72 per diluted share, compared to $267.2 million, or $1.50 per diluted share, for the comparable 2011 period.

Excerpts from the earnings press release...

During the fourth quarter 2012, QEP Energy's Bakken/Three Forks net production averaged 18,348 Boed. The Company completed and turned to sales 11 operated wells, including two wells in the South Antelope Area (QEP Energy's average working interest 99%) and nine wells within the Fort Berthold Reservation (QEP Energy's average working interest 74%) during the fourth quarter. The South Antelope wells were both completed in the Three Forks Formation and had an average 24-hour initial production rate of 2,175 Boed. The Fort Berthold Reservation completions included five wells (QEP Energy's working interest 76%) on the Independence Pad (three Three Forks Formation and two Bakken Formation) with an average 24-hour initial production rate of 2,550 Boed; two wells on a pad just west of the Independence Pad (QEP Energy's working interest 75%, one Three Forks Formation and one Bakken Formation) with an average 24-hour initial production rate of 2,450 Boed; and two eastern delineation wells on a pad in T 148 N-R 91 W (QEP Energy's working interest 70%, one Three Forks Formation and one Bakken Formation) with an average 24-hour initial production rate of 965 Boed.

• At the end of 2012, the Company operated 84 producing wells in the Williston Basin, including 38 Bakken wells, 43 Three Forks wells and three dual lateral horizontal wells producing from both the Bakken and Three Forks formations. In addition, the Company has a working interest in 191 outside-operated producing wells. • At the end of the fourth quarter, QEP Energy had 11 operated wells drilling or at intermediate casing point and nine QEP Energy-operated wells awaiting completion (QEP Energy's average working interest 87%). The Company also had interests in 16 outside-operated wells being drilled (QEP Energy's average working interest 7%) and 23 outside-operated wells awaiting completion (QEP Energy's average working interest 3%) at the end of the fourth quarter. • At the end of 2012, QEP Energy had five rigs operating in the Bakken/Three Forks play (two in the South Antelope Area and three within the Fort Berthold Reservation). QEP Energy's operated completed well costs for a typical long-lateral Bakken or Three Forks well averaged $11 million in the second half of 2012. Source: QEP