QEP Resources Announces 2012 Capital Budget, Production and EBITDA Guidance

Nov 14, 2011, 07:45 ET from QEP Resources

DENVER, Nov. 14, 2011 /PRNewswire/ -- QEP Resources (NYSE: QEP) today announced its capital budget, production, and EBITDA guidance for 2012.  The company's guidance incorporates the commodity derivatives portfolio in place as detailed in the company's earnings release dated October 25, 2011.  Other assumptions are summarized in the table below.  

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Detailed information on QEP's key projects will be provided during an Analyst meeting scheduled to begin at 9:00am ET today and which can be accessed via a live audio webcast from the Investor Relations tab of the Company's website at www.qepres.com with a replay available for a limited time after the event.  The slide presentation will also be available at the same location before the event begins.

"QEP's 2012 capital program and the resultant forecasted growth in production and EBITDA clearly illustrates the depth and quality of our asset base," said Chuck Stanley, President and CEO.  "We believe that QEP is unique in our ability to drive significant and profitable growth with a capital program that approximates EBITDA.  In response to current commodity prices, we are decreasing capital allocated to the Haynesville Shale and other dry gas development areas and increasing capital allocated to high return projects including Pinedale, the Bakken, and oil-directed horizontal drilling in the Powder River Basin and Midcontinent.  In addition, we plan to commence development of our Uinta Basin Red Wash liquids-rich gas play.  In response to growing QEP Energy and third-party demand, QEP Field Services will begin construction on Iron Horse II, a new 150 MMcfpd fee-based cryogenic gas processing plant in the Uinta Basin," Stanley added.  

The company estimates that QEP Energy should deliver 12 to 14% organic production growth in 2012.  The 2012 capital plan assumes no asset sales or joint ventures and is based on the current forward curve for commodity prices.

Guidance and Assumptions

2011

2012

Current

Current

QEP Resources adjusted EBITDA (millions)

$1,315-$1,350

$1,450-$1,550

QEP Energy capital investment (millions)

$1,250

$1,330

QEP Field Services capital investment (millions)

95

170

QEP Marketing and other capital investment (millions)

5

--

 Total QEP Resources capital investment (millions)

$1,350

$1,500

QEP Energy production – Bcfe

270 - 274

305 – 310

NYMEX gas price per MMBtu (a)

$3.50-$4.00

$3.75-$4.25

NYMEX crude oil price per bbl (a)

$80.00-$90.00

$90.00-$100.00

NYMEX/Rockies basis differential per MMBtu (a)

$0.25-$0.10

$0.20-$0.15

NYMEX/Midcontinent basis differential per MMBtu (a)

$0.25-$0.10

$0.20-$0.15

(a) For remaining 2011 and full-year 2012 un-hedged volumes

About QEP Resources

QEP Resources, Inc. (NYSE: QEP) is a leading independent natural gas and oil exploration and production company with operations focused in the Rocky Mountain and Midcontinent 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.  Forward-looking statements can be identified by words such as "anticipates," "believes," "forecasts," "plans," "estimates," "expects," "should," "will" or other similar expressions.  Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks.  These forward-looking statements include statements regarding:  forecasted adjusted EBITDA, production and capital investment for 2011 and 2012 and related assumptions for such guidance; percentage of net realized production revenues attributed to oil and NGL production; number of rigs planned in operating areas; changes in lease operating expenses; the effects of restricting the flowing rate at the Haynesville Shale; and the capacity of the Blacks Fork II plant and the timing of such plant being fully operational.  Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to:  the availability of capital; changes in local, regional, national and global demand for natural gas, oil and NGL; shortages of oilfield equipment, services and personnel; operating risks such as unexpected drilling conditions; weather conditions; changes in maintenance and construction costs; the availability and cost of credit; and the other risks discussed in the Company's periodic filings with the Securities and Exchange Commission, including the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2010.  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.

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

SOURCE QEP Resources



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