QEP Resources Q3 Results Miss View - Update

(RTTNews) - Oil and natural gas company QEP Resources Inc. (QEP) Tuesday reported a profit for the third quarter, compared to a loss last year, but both adjusted earnings and revenues missed Wall Street estimates. The stock fell over 5 percent in the extended session.

The firm reported net income of $37.3 million or $0.21 per share, compared to a net loss of $3.1 million or $0.02 per share last year.

According to the company, net income or loss includes non-cash gains and losses associated with the change in the fair value of derivative instruments, gains and losses from asset sales, certain significant accrued litigation loss contingencies.

Excluding items, adjusted earnings were $63 million or $0.36 per share, while it totaled $35.4 million or $0.19 per share in the prior year. On average, 21 analysts polled by Thomson Reuters estimated earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues jumped 43 percent to $772.8 million from $542.4 million a year ago, helped by strong growth in oil sales. Analysts expected revenues of $795.37 million for the quarter.

Production for the quarter fell 4 percent to 78 billions of cubic feet equivalent or bcfe.

QEP Energy's crude oil production increased 83 percent to 28.7 thousand barrels of oil equivalent per day or Mbopd due primarily to growth in the Williston Basin, while natural gas production decreased 14 percent due mainly to declining Haynesville production. NGL volumes decreased 17 percent as a result of ethane rejection.

Citing asset sales and changes in commodity prices, QEP Energy now expects annual production of 310 - 315 Bcfe, compared to the previous forecast of 315 - 320 Bcfe.

QEP closed down 0.5 percent at $33.28 on Tuesday, but fell 5.4 percent in the extended session to trade at $31.50.