QEP RESOURCES REPORTS SECOND QUARTER 2019 FINANCIAL AND OPERATING RESULTS
BOARD CONCLUDES STRATEGIC ALTERNATIVES REVIEW PROCESS
DENVER — August 7, 2019 — QEP Resources, Inc. (NYSE:QEP) (QEP or the Company) today reported second quarter 2019 financial and operating results and announced the outcome of its strategic alternatives review process.
QEP’s Board of Directors concluded formal strategic alternatives review process
Go forward strategy focuses on free cash flow, reducing leverage and returning capital to shareholders
Announced reinstatement of quarterly dividend of $0.02 per share
Increased full-year production guidance for crude oil, natural gas and NGL
Lowered mid-point of capital expenditure guidance by $50 million, or 8%, reflecting lower drilling and completion costs
Lowered quarterly general and administrative expense to $32 million, a 50% decrease compared with first quarter 2019
Poised to deliver Free Cash Flow in second half of 2019 and in 2020 at $50 oil while growing oil production 6% year over year
Announced plans to add two new independent directors and form an Operations Committee of the Board
"QEP delivered solid performance in the second quarter, demonstrating significant progress on a number of fronts. The Company has completed its formal strategic review process and accelerated its transition to a high-performance, low-cost operator focused on free cash flow generation and returning capital to shareholders. We have increased annual production guidance for crude oil, natural gas and NGL, lowered CAPEX guidance by $50 million and reduced G&A expense by 50% - over $30 million - compared with the first quarter," commented Tim Cutt, President and CEO of QEP.
"Following a comprehensive review of strategic alternatives that began in February of this year, our Board has determined that the best path to create superior value for our shareholders is to move forward as an independent company. By continuing to improve operations and reduce costs, we will have the ability to generate meaningful free cash flow, which we will deploy to strengthen our balance sheet and return capital to shareholders, beginning with our reinstated quarterly dividend. The Board remains open to shareholder input and committed to all steps to maximize shareholder value, and has decided to add two new independent directors and form an Operations Committee to build on the progress we have made to-date, and continue to improve operational performance."
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, August 7, 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.
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Ticker: QEP CIK: 1108827 Form Type: 10-Q Quarterly Report Accession Number: 0001108827-19-000062 Submitted to the SEC: Wed Oct 23 2019 12:30:32 PM EST Accepted by the SEC: Wed Oct 23 2019 Period: Monday, September 30, 2019 Industry: Crude Petroleum And Natural Gas