QEP Resources (QEP) Tops Q3 EPS by 18c, Revenues Beat

QEP Resources (NYSE: QEP) reported Q3 EPS of $0.17, $0.18 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $560.8 million versus the consensus estimate of $498.38 million.

"Our Permian Basin asset delivered Company record oil production volumes for the third consecutive quarter, driven primarily by continued utilization of our 'tank-style' development technique, combined with well density optimization and unmatched completion efficiency," commented Chuck Stanley, Chairman, President and CEO of QEP. "During the quarter, we put four more Permian Basin wells on production than forecast, as we continued to deliver quarter-over-quarter improvements in the pace of new well delivery while driving down costs through industry-leading frac crew efficiency and full utilization of locally sourced proppant. Permian Basin lease operating and gathering and transportation expense also continued to decline as we grew production from horizontal wells, plugged legacy vertical wells and captured operational performance benefits from our full field development.

"With these operational improvements, we now expect to complete five more wells and put on production approximately 17 wells - three more than forecast - in the Permian in the fourth quarter, with over half of these wells having expected lateral lengths of 9,500 feet or greater," continued Stanley. "We expect the transition to predominately long laterals, combined with our current four drilling rig and single frac crew program, will support our production profile as we exit 2018 and lay the foundation for 20% - 25% year-over-year Permian Basin oil production growth in 2019.

"Yesterday, we entered into a definitive agreement to sell our Williston Basin assets. The assets have been a significant contributor to the Company for many years and were critical in our pivot towards a more oil-focused portfolio," continued Stanley. "This transaction marks an important milestone in simplifying our asset portfolio as we continue on our path to becoming a Permian pure-play operator. We intend to use proceeds from asset sales to fund ongoing development of our core Permian assets, reduce debt, and return cash to shareholders through a share repurchase program," concluded Stanley.

For earnings history and earnings-related data on QEP Resources (QEP) click here.

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