QEP Resources Announces 2011 Capital Budget, Production Guidance and EBITDA Forecast

DENVER, Nov. 16, 2010 /PRNewswire-FirstCall/ -- QEP Resources (NYSE: QEP) today provided capital budget, production, and EBITDA guidance for 2011.  The company's guidance incorporates the commodity derivatives portfolio in place as detailed in the company's earnings release dated October 26, 2010.  Other assumptions are summarized in the table below:

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"We believe we can continue to drive profitable growth by carefully allocating capital across our upstream and midstream businesses," said Chuck Stanley, QEP Resources President and CEO.  "Despite a planned $200 million reduction in our 2011 capital investment program, we anticipate we can still deliver mid-teens annual production growth from our high-quality, low-cost E&P assets.  We will allocate capital to the highest return plays in our portfolio while striving to preserve efficiency gains we have achieved in our core operations at Pinedale and in the Haynesville Shale."  The company's guidance assumes a capital program that is funded from operating cash flow, with no planned asset sales or joint ventures.  "We recognize that we remain in a dynamic environment, and we will respond to changes in prices with appropriate adjustments to our capital investment programs," Stanley added.

Of the $1,050 million capital investments planned in QEP Energy, approximately 60% will be directed toward the company's Midcontinent operations.  In addition, approximately 50% of QEP Field Services' planned capital investment will be used to complete construction of the 420 MMcfpd Blacks Fork II cryogenic gas processing plant in western Wyoming.  When complete in the 4th quarter of 2011, the plant will significantly enhance the economics of continued development of QEP's Pinedale Anticline asset.

About QEP Resources

QEP Resources (NYSE: QEP) is a leading independent natural gas and oil exploration and production company with operations focused in the Rocky Mountain and Midcontinent regions of the United States.  QEP Resources also gathers, compresses, treats, processes and stores natural gas.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended.  Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks.  Factors that could cause actual results to differ from those anticipated are discussed in the company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009.  QEP Resources undertakes no obligation to publicly correct or update the forward-looking statements in this news release, in other documents, or on the Web site to reflect future events or circumstances.  All such statements are expressly qualified by this cautionary statement.

Non-GAAP Measure

This release also contains reference to a non-GAAP measure of EBITDA.  Management defines EBITDA as net income before the following items:  discontinued operations, unrealized gains and losses on basis-only swaps, gains and losses from asset sales, interest and other income, income taxes, interest expense, separation costs, loss on early extinguishment of debt, depreciation, depletion, and amortization, abandonment and impairment, and exploration expense.  Management believes EBITDA is an important measure of the Company's cash flow and liquidity and an important measure for comparing the Company's financial performance to other gas and oil producing companies.

For more information, visit QEP Resources' Internet site at: www.qepres.com.

SOURCE QEP Resources