QEP REPORTS FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL AND OPERATING RESULTS
AND PROVIDES INITIAL 2019 GUIDANCE AND CAPITAL INVESTMENT PLAN
DENVER — February 20, 2019 — QEP Resources, Inc. (NYSE: QEP) (QEP or the Company) today reported fourth quarter and full year 2018 financial and operating results and provided initial 2019 guidance and capital investment plan.
FULL YEAR 2018 HIGHLIGHTS
Delivered record oil and condensate production of 23.9 MMbbls, including a record of 12.1 MMbbls in the Permian Basin
Reported year-end total proved reserves in the Permian Basin of 307.8 MMboe, a 13% increase over 2017
Reported year-end total proved reserves of 658.2 MMboe, including record proved crude oil and condensate reserves of 339.1 MMbbls
"2018 was a year of transition and transformation for QEP. We made significant progress on the strategic initiatives we outlined in February 2018, which were aimed at streamlining our operations, optimizing our cost structure and rationalizing our asset portfolio," commented Tim Cutt, President and CEO of QEP. "We enter 2019 with a renewed focus on actively managing and improving our cost structure, more specifically, reducing our G&A expense and lowering the capital intensity of the business. We are committed to aligning our activity and our production profile to the current commodity price environment and reaching cash-flow neutrality in 2019.
"Earlier today we announced that we have commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. Our Board and management team are committed to taking all appropriate and necessary actions to drive value for QEP shareholders and we believe the best way to accomplish this goal is to run a broad process designed to identify the potential value of these strategic alternatives.
"We also announced that we have terminated our agreement with Vantage Acquisition Operating Company, LLC, to sell our Williston Basin assets. We now intend to move forward with a paced development of the remaining high-return Williston inventory to maximize the value of the asset.
“As we look to supplement cash flows in 2019, we intend to pursue the monetization of our gas midstream infrastructure in the Permian Basin in the first half of the year and continue to evaluate strategic options for our remaining Permian midstream infrastructure, as well as other non-core properties in our portfolio.
"QEP has undergone significant, positive changes over the last 12 months and we remain focused on operating our business safely, delivering best in class capital and operating costs, and maintaining technical and operating excellence."
The Company has posted to its website www.qepres.com a presentation that supplements the information provided in this release.
The following information was filed by Qep Resources, Inc. (QEP) on Wednesday, February 20, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.