QEP Resources (QEP) Incurs Q4 Loss Due To Weak Oil Prices
Zacks Investment Research | Mar 09, 2020 11:32PM ET
QEP Resources, Inc. (NYSE:QEP) incurred a net loss of 10 cents per share in the fourth quarter, primarily due to weak commodity price realizations. The Zacks Consensus Estimate was of a profit of 6 cents per share. Precisely, this upstream player’s oil price realization of $51.36 per barrel missed the Zacks Consensus Estimate of $54.
However, QEP Resources’ loss narrowed from the year-ago quarter’s adjusted loss of 13 cents on the back of higher output from the Permian play.
Quarterly revenues of $321.9 million lagged the Zacks Consensus Estimate of $329 million. Moreover, the top line deteriorated sharply from the year-ago figure of $410.5 million.
Volume Analysis
Production of crude and natural gas totaled 8,465.3 Mboe (67% oil and condensate), down 27% from the year-ago figure, primarily reflecting the sale of Haynesville/Cotton Valley and Uinta Basin assets. Further, lower activity levels in the Williston Basin caused an 11% reduction in volumes from the region.
Natural gas volumes substantially plunged 70% year over year to 8.5 billion cubic feet (Bcf) while natural gas liquids output improved 17% to 1,391.2 thousand barrels (Mbbl). Meanwhile, oil volumes declined from 5,749.9 Mbbl in fourth-quarter 2018 to 5,653.9 Mbbl in the quarter under review.
However, with the company’s focus shifted to the Permian Basin, equivalent production from the area rose 17% year over year to a record 5,113.4 Mboe. Investors should know that QEP Resources allocated bulk of its 2019 capital budget to this lucrative basin as it aims at transforming itself into a Permian pure play.
Realized Prices
QEP Resources’ net realized natural gas price in the quarter was $1.53 per thousand cubic feet, down 43% from the year-ago level of $2.69. The realized price also lagged the Zacks Consensus Estimate of $1.81 per Mcf of gas. Net oil price realization fell 5% year over year to $51.36 per barrel and was also below the Zacks Consensus Estimate of $54 per barrel. Finally, net NGLs price realization plummeted 47% from the fourth quarter of 2018 to $10.22 per barrel and also missed the Zacks Consensus Estimate of $10.63.
QEP Resources, Inc. Price, Consensus and EPS Surprise
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