QEP Resources Inc. Earnings: Beats Street Despite Swinging to a Loss

The Cheat Sheet

S&P 500 component QEP Resources Inc. reported its results for the fourth quarter. QEP Resources is an energy company that explores and develops natural gas, oil and natural gas liquids.

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QEP Resources Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $300,000 (one cent per diluted share) in the quarter. QEP Resources Inc. had a net income of $65.8 million or 37 cents per share in the year-earlier quarter.

Revenue: Rose 45.1% to $853.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: QEP Resources Inc. reported adjusted net income of 58 cents per share. By that measure, the company beat the mean estimate of 44 cents per share. It beat the average revenue estimate of $759.3 million.

Quoting Management: “QEP Resources completed another successful year in 2011,” said Chuck Stanley, President and CEO. “QEP Energy production was up 20% from last year, driven by strong results from the Pinedale Anticline and Haynesville Shale plays, combined with significant contributions from new wells in our Woodford “Cana” Shale and Bakken/Three Forks plays. With 68% of our 2011 drilling capital directed to oil and liquids-rich gas plays, we grew oil and NGL production 54% and year-end proved crude oil and NGL reserves 107% compared to 2010. Crude oil and NGL production accounted for 29% of QEP Energy net realized production revenues for the year and we expect that share to grow as we allocate more of our 2012 QEP Energy capital to our higher-margin oil and liquids-rich gas resource plays. Our midstream business, QEP Field Services, had an excellent year, thanks to a combination of great execution coupled with strong gas processing margins.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 8 cents in the third quarter and by 9 cents in the second quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 42 cents per share, a drop from 49 cents. The average estimate for the fiscal year is $1.62 per share, a rise from $1.59 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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