Exhibit 99.1
| | |
 | | News Release |
| | QEP Resources, Inc. 1050 17th Street, Suite 500 Denver, CO 80265 |
October 26, 2010
NYSE: QEP
Contact: Scott Gutberlet
Phone: 303-672-6988
QEP RESOURCES REPORTS THIRD QUARTER EBITDA OF $297.5 MILLION
AND PRODUCTION OF 61.7 BCFE
Company raises 2010 EBITDA and production guidance
DENVER — QEP Resources (NYSE:QEP) reported third quarter 2010 production of 61.7 Bcfe compared to 43.8 Bcfe for the 2009 period, a 41% increase. Production volumes in the 2009 quarter were impacted by price-related production curtailments. Accounting for the curtailments, QEP production was up approximately 20% in the third quarter of 2010 compared to the prior year quarter. QEP third quarter 2010 continuing EBITDA (a non-GAAP measure) was $297.5 million, compared to $285.3 million a year earlier, a 4% increase in spite of a 28% decrease in net realized natural gas prices. Net income from continuing operations in the 3rd quarter of 2010 was $71.1 million or $0.40 per diluted share, essentially equal to the $71.4 million or $0.40 per diluted share for the third quarter of 2009. Excluding changes in unrealized gains and losses on natural gas basis-only swaps, gains and losses on non-core asset sales, separation costs and losses on early extinguishment of debt, QEP Resources net income from continuing operations was $57.2 million or $0.32 per diluted share for the current quarter compared to $78.3 million or $0.43 per diluted share in the prior-year period.
CONTINUING EBITDA BY SUBSIDIARY
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | | | | 9 Months Ended September 30, | | | | |
| | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
QEP Energy | | $ | 246.0 | | | $ | 237.3 | | | | 4 | % | | $ | 683.8 | | | $ | 714.3 | | | | (4 | )% |
QEP Field Services | | | 48.9 | | | | 47.0 | | | | 4 | | | | 151.5 | | | | 113.9 | | | | 33 | |
QEP Marketing and other | | | 2.6 | | | | 1.0 | | | | 160 | | | | 6.7 | | | | 11.3 | | | | (41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL(a) | | $ | 297.5 | | | $ | 285.3 | | | | 4 | % | | $ | 842.0 | | | $ | 839.5 | | | | — | % |
| (a) | See computation in attached schedule |
NET INCOME BY SUBSIDIARY
(in millions, except earnings per share)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | | | | 9 Months Ended September 30, | | | | |
| | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
QEP Energy | | $ | 58.6 | | | $ | 49.6 | | | | 18 | % | | $ | 165.0 | | | $ | 64.3 | | | | 157 | % |
QEP Field Services(a) | | | 21.0 | | | | 21.5 | | | | (2 | ) | | | 68.5 | | | | 47.4 | | | | 45 | |
QEP Marketing and other | | | 2.0 | | | | 0.3 | | | | 567 | | | | 3.6 | | | | 6.5 | | | | (45 | ) |
Separation and debt extinguishment costs | | | (10.5 | ) | | | — | | | | — | | | | (19.1 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations(a) | | $ | 71.1 | | | $ | 71.4 | | | | — | % | | $ | 218.0 | | | $ | 118.2 | | | | 84 | % |
| | | | | | |
Discontinued operations(b) | | | — | | | | 20.6 | | | | — | | | | 43.2 | | | | 59.2 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
NET INCOME(a) | | $ | 71.1 | | | $ | 92.0 | | | | (23 | %) | | $ | 261.2 | | | $ | 177.4 | | | | 47 | % |
| | | | | | |
Earnings per diluted share | | | | | | | | | | | | | | | | | | | | | | | | |
From continuing operations | | $ | 0.40 | | | $ | 0.40 | | | | | | | $ | 1.23 | | | $ | 0.67 | | | | | |
Total earnings | | $ | 0.40 | | | $ | 0.52 | | | | | | | $ | 1.47 | | | $ | 1.01 | | | | | |
Weighted average diluted shares | | | 177.9 | | | | 176.3 | | | | | | | | 177.6 | | | | 176.1 | | | | | |
| (a) | Net income represents amounts attributable to QEP Resources after deducting non-controlling interest. |
| (b) | QEP Resources completed its tax-free spin-off from Questar Corporation on June 30, 2010. In conjunction with the spin-off, QEP Resources distributed the common stock of its wholly-owned subsidiary, Wexpro Company, to Questar. Accordingly, Wexpro’s historical financial results have been presented as discontinued operations in this release. |
“The QEP Resources team continued to execute well in the third quarter,” said Chuck Stanley, President and CEO. “Taking into account price-related curtailments in the third quarter of 2009, QEP Energy delivered approximately 20% year-over-year production growth, driven by strong results from ongoing Haynesville Shale and Pinedale Anticline development activities, combined with significant contributions from new wells in our Woodford Shale, Granite Wash and Bakken plays. We are well-positioned to deliver at least 15% year-over-year production growth in 2010. QEP Field Services also had a good quarter. Field Services gathering and processing businesses benefitted from growing production at QEP Energy and our third-party customers.” Stanley added.
Third Quarter 2010 Highlights
| | • | | QEP Energy grew natural gas, oil and NGL production to 61.7 billion cubic feet of natural gas equivalent (Bcfe) compared to 43.8 Bcfe for the 2009 quarter. Crude oil and NGL’s comprised 11% of reported production volumes. Third quarter 2010 production was up 15% from second quarter 2010 volumes. |
| | • | | QEP Energy’s third quarter 2010 EBITDA increased 4% compared to 2009, driven by a 41% increase in production which more than offset a 28% decrease in net realized natural gas prices. |
| | • | | Net crude oil and NGL revenues (including the settlement of crude oil-related derivatives) represented 19% of QEP Energy’s net realized production revenues in the third quarter of 2010. |
| | • | | Net realized natural gas prices at QEP Energy averaged $4.64 per thousand cubic feet (Mcf), down 28% compared to third quarter 2009. While field-level natural gas prices were higher in the third quarter of 2010, net proceeds from the settlement of natural gas-related derivatives were significantly lower than in the 2009 quarter. Field-level natural gas prices in the third quarter of 2010 were $3.37 per Mcf compared to $2.46 per Mcf in 2009, a 37% increase. Natural gas-related derivative settlements increased net revenues $69.7 million in the third quarter of 2010 compared to $156.7 million in the 2009 quarter. |
| | • | | Net realized crude oil and NGL prices averaged $53.74 per barrel, up 3% from the year-ago quarter. Field-level prices increased 3% to $55.03 per barrel. Oil related derivative settlements reduced revenues $1.4 million compared to a $0.7 million decrease in the third quarter of 2009. |
| | • | | Sales of non-core assets at QEP Energy increased net income $6.9 million, compared to a loss of $0.2 million in 2009 |
| | • | | Loss on early extinguishment of debt reduced net income $8.2 million in the current year quarter. |
| | • | | Changes in unrealized gains and losses on natural gas basis-only swaps increased net income $17.5 million in the 2010 quarter compared to a loss of $6.7 million in the year-earlier period. |
| | • | | QEP Field Services EBITDA in the third quarter of 2010 was $48.9 million compared to $47.0 million a year ago, a 4% increase. A 16% increase in gathering margin, driven by a 33% increase in gathering volumes was partially offset by a 20% reduction in keep-whole gas processing margin. Net income was $21.0 million in the third quarter of 2010 down 2% from $21.5 million in the 2009 quarter. |
QEP Resources increases 2010 EBITDA guidance; QEP Energy 2010 production guidance
QEP Resources now expects that 2010 EBITDA from continuing operations could range from $1.075 to $1.125 billion while QEP Energy 2010 EBITDA could range from $880 to $920 million based on QEP Energy 2010 production guidance of 225 to 227 Bcfe.
The company’s guidance assumes hedges in place on the date of this release. Other assumptions are summarized in the table below:
Guidance and Assumptions
| | | | | | | | |
| | | 2010
Current | | | 2010
Previous | |
QEP Resources continuing EBITDA (billions) | | $ | 1.075-$1.125 | | | $ | 1.025-$1.075 | |
QEP Energy EBITDA (millions) | | $ | 880-$920 | | | $ | 850-$900 | |
QEP Resources capital spending (billions) | | $ | 1.42 | | | $ | 1.34 | |
QEP Energy production – Bcfe | | | 225-227 | | | | 218-222 | |
NYMEX gas price per MMBtu(a) | | $ | 3.50-$4.25 | | | $ | 4.00-$5.00 | |
NYMEX crude oil price per bbl(a) | | $ | 75.00-$85.00 | | | $ | 70.00-$80.00 | |
NYMEX/Rockies basis differential per MMBtu(a) | | $ | 0.40-$0.20 | | | $ | 0.75-$0.50 | |
NYMEX/Midcontinent basis differential per MMBtu(a) | | $ | 0.30-$0.20 | | | $ | 0.50-$0.30 | |
| (a) | For remainder of 2010 unhedged volumes |
QEP Energy has hedged about 67% of forecast natural gas and oil-equivalent production for the remainder of 2010 with fixed-price swaps and 5% with collars. (See table at the end of this release).
QEP Energy Third Quarter Production Up 41%; EBITDA Up on Increased Production
QEP Energy – a QEP Resources subsidiary that acquires, explores for, develops and produces natural gas and oil – reported production of 61.7 Bcfe in the third quarter of 2010 compared to 43.8 Bcfe in the 2009 quarter. The Midcontinent region contributed 54% of QEP Energy production for the third quarter of 2010 compared to 46% in the 2009 quarter. Third quarter QEP Energy 2010 EBITDA was $246.0 million compared to $237.3 million in the 2009 quarter. The increase in current-year EBITDA was primarily the result of a 41% increase in production which more than offset a 28% decrease in net realized natural gas prices.
QEP Energy – Production by Region (Bcfe)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | 9 Months Ended
September 30, | |
| | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
Midcontinent | | | 33.4 | | | | 20.3 | | | | 65 | % | | | 87.1 | | | | 61.1 | | | | 43 | % |
Pinedale Anticline | | | 17.9 | | | | 14.7 | | | | 22 | | | | 49.9 | | | | 43.4 | | | | 15 | |
Uinta Basin | | | 5.3 | | | | 5.6 | | | | (5 | ) | | | 15.9 | | | | 17.9 | | | | (11 | ) |
Rockies Legacy | | | 5.1 | | | | 3.2 | | | | 59 | | | | 14.0 | | | | 11.7 | | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total QEP Energy | | | 61.7 | | | | 43.8 | | | | 41 | % | | | 166.9 | | | | 134.1 | | | | 24 | % |
QEP Energy – Realized Prices
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 Months Ended
September 30, | | | 9 Months Ended
September 30, | |
| | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
Average field-level natural gas price ($ per Mcf) | | $ | 3.37 | | | $ | 2.46 | | | | 37 | % | | $ | 3.80 | | | $ | 2.76 | | | | 38 | % |
Natural gas hedging impact ($ per Mcf) | | | 1.77 | | | | 4.18 | | | | | | | | 1.62 | | | | 3.99 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average revenue ($ per Mcf)(a) | | | 5.14 | | | | 6.64 | | | | | | | | 5.42 | | | | 6.75 | | | | | |
Realized losses on basis-only swaps ($ per Mcf) (b) | | | (0.50 | ) | | | (0.18 | ) | | | | | | | (0.61 | ) | | | (0.13 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net realized natural gas price ($ per Mcf) | | $ | 4.64 | | | $ | 6.46 | | | | (28 | %) | | $ | 4.81 | | | $ | 6.62 | | | | (27 | %) |
| | | | | | |
Average field-level oil and NGL price ($ per bbl) | | $ | 55.03 | | | $ | 53.30 | | | | 3 | % | | $ | 58.61 | | | $ | 41.09 | | | | 43 | % |
Oil and NGL hedging impact ($ per bbl) | | | (1.29 | ) | | | (0.89 | ) | | | | | | | (1.78 | ) | | | 2.05 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net realized oil and NGL price ($ per bbl) (a) | | $ | 53.74 | | | $ | 52.41 | | | | 3 | % | | $ | 56.83 | | | $ | 43.14 | | | | 32 | % |
| (a) | Reported in revenues in the consolidated income statement. |
| (b) | Reported below operating income in the consolidated income statement. |
QEP Energy – Production Costs (per Mcfe)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 Months Ended
September 30, | | | 9 Months Ended
September 30, | |
| | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
Depreciation, depletion and amortization | | $ | 2.56 | | | $ | 2.76 | | | | (7 | %) | | $ | 2.59 | | | $ | 2.74 | | | | (5 | %) |
Lease operating expense | | | 0.54 | | | | 0.67 | | | | (19 | ) | | | 0.55 | | | | 0.72 | | | | (24 | ) |
General and administrative expense | | | 0.29 | | | | 0.40 | | | | (28 | ) | | | 0.33 | | | | 0.38 | | | | (13 | ) |
Allocated interest expense | | | 0.34 | | | | 0.36 | | | | (6 | ) | | | 0.35 | | | | 0.34 | | | | 3 | |
Production taxes | | | 0.30 | | | | 0.24 | | | | 25 | | | | 0.35 | | | | 0.29 | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Production costs | | $ | 4.03 | | | $ | 4.43 | | | | (9 | %) | | $ | 4.17 | | | $ | 4.47 | | | | (7 | %) |
| | • | | QEP Energy average total costs per unit of gas-equivalent production decreased 9% compared to the third quarter of 2009, due primarily to reduced depreciation, depletion and amortization expense and reduced lease operating expense. |
| | • | | Production volume-weighted average depreciation, depletion and amortization per Mcfe (the DD&A rate) decreased compared to 2009 in both the quarter and year-to-date periods as the result of increased proved reserves related to higher natural gas and oil prices compared to a year ago. The third-quarter 2010 DD&A rate decreased $0.03/Mcfe compared to the second quarter 2010. |
| | • | | QEP Energy cash cost of production – lease operating expense plus general and administrative expense, allocated interest, and production taxes was $1.47 per Mcfe, compared to $1.67 per Mcfe in the third quarter of 2009, a 12% decrease. |
| | • | | Lease operating expense per Mcfe in the current year periods decreased as the result of increased production volumes combined with lower operating expense in the year-to-date period. Growing production from new high-rate, low-operating cost wells in NW Louisiana and declining production from higher cost areas is lowering average lease operating expense. |
| | • | | General and administrative expense per Mcfe in the current year periods decreased as the result of increased production volumes combined with flat expense in the quarter, and an 11% increase in expense for the nine month period. |
| | • | | Production taxes per Mcfe increased in the current periods as the result of higher field-level prices. |
QEP Field Services EBITDA up in Third Quarter 2010
QEP Field Services (Field Services) – a QEP subsidiary that provides gas gathering and processing services – reported EBITDA of $48.9 million in the third quarter of 2010 compared to $47 million a year earlier, a 4% increase. Net income of $21.0 million in the third quarter of 2010 was essentially flat compared to $21.5 million in the 2009 quarter.
| | • | | Gathering margin (total gathering revenues less gathering-related operating expenses) increased 16%, or $5.3 million, in the third quarter of 2010, driven primarily by a 33% increase in total throughput volume to 1.4 million MMBtu per day. The increased volumes were primarily in NW Louisiana. |
| | • | | Processing margin (total processing plant revenues less plant operating expenses and shrink) decreased 14%, or $3.0 million, driven by 20% lower keep-whole processing margins. NGL margins (NGL revenue less shrink) declined to $0.50/Gal in the third quarter of 2010 compared to $0.57/Gal in the 2009 quarter. The decrease was the result of a 42% increase in shrink cost and a 9% decrease in NGL volume partially offset by a 5% increase in NGL prices. |
| | • | | Approximately 81% of Field Services’ third quarter 2010 net operating revenue was derived from fee-based gathering and processing contracts, compared to 76% in the 2009 quarter. |
Third Quarter 2010 Earnings Teleconference
QEP Resources management will discuss third quarter and nine month 2010 results and the outlook for the remainder of the year in a conference call with investors Wednesday, October 27, beginning at 11:00 a.m. EDT. The call can be accessed atwww.qepres.com.
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.
For more information, visit QEP Resources’ Internet site at:www.qepres.com.
Hedge Positions – October 26, 2010
| | | | | | | | | | | | | | | | | | | | | | | | |
| Time Periods | | Rocky Mountain | | | Midcontinent | | | Total | | | Rocky Mountain | | | Midcontinent | | | Total | |
| | | Gas (Bcf) fixed-price swaps | | | Estimated Average price per Mcf, net to the well | |
2010 | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth quarter | | | 23.0 | | | | 15.3 | | | | 38.3 | | | | $3.61 | | | | $7.71 | | | | $5.25 | |
| | | | | | |
2011 | | | | | | | | | | | | | | | | | | | | | | | | |
First half | | | 38.6 | | | | 12.0 | | | | 50.6 | | | | $4.43 | | | | $6.44 | | | | $4.91 | |
Second half | | | 39.3 | | | | 12.2 | | | | 51.5 | | | | 4.43 | | | | 6.44 | | | | 4.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
12 months | | | 77.9 | | | | 24.2 | | | | 102.1 | | | | 4.43 | | | | 6.44 | | | | 4.91 | |
| | | | | | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | |
First half | | | 20.2 | | | | | | | | 20.2 | | | | $5.91 | | | | | | | | $5.91 | |
Second half | | | 20.4 | | | | | | | | 20.4 | | | | 5.91 | | | | | | | | 5.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
12 months | | | 40.6 | | | | | | | | 40.6 | | | | 5.91 | | | | | | | | 5.91 | |
| | | | | | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | |
First half | | | 23.4 | | | | | | | | 23.4 | | | | $5.98 | | | | | | | | $5.98 | |
Second half | | | 23.8 | | | | | | | | 23.8 | | | | 5.98 | | | | | | | | 5.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
12 months | | | 47.2 | | | | | | | | 47.2 | | | | 5.98 | | | | | | | | 5.98 | |
| | |
| | | Gas (Bcf) collars | | | Estimated Average price per Mcf, net to the well | |
| | | | | | | | | | | | Floor -Ceiling | | | Floor -Ceiling | | | Floor -Ceiling | |
2010 | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth quarter | | | | | | | 1.7 | | | | 1.7 | | | | | | | | $4.65-$6.51 | | | | $4.65-$6.51 | |
| | | | | | |
2011 | | | | | | | | | | | | | | | | | | | | | | | | |
First half | | | 6.7 | | | | 7.0 | | | | 13.7 | | | | $3.39-$5.78 | | | | $5.82-$7.49 | | | | $4.63-$6.66 | |
Second half | | | 6.8 | | | | 7.2 | | | | 14.0 | | | | 3.39 -5.78 | | | | 5.82 - 7.49 | | | | 4.63 - 6.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
12 months | | | 13.5 | | | | 14.2 | | | | 27.7 | | | | 3.39 - 5.78 | | | | 5.82 - 7.49 | | | | 4.63 - 6.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Oil (Mbbl) fixed-price swaps | | | Estimated Average price per Bbl, net to the well | |
2010 | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth quarter | | | 212 | | | | 18 | | | | 230 | | | $ | 60.18 | | | $ | 66.15 | | | $ | 60.66 | |
| | |
| | | Oil (Mbbl) collars | | | Estimated Average price per Bbl, net to the well | |
| | | | | | | | | | | | Floor -Ceiling | | | Floor -Ceiling | | | Floor -Ceiling | |
2010 | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth quarter | | | 124 | | | | 60 | | | | 184 | | | $ | 45.00-$93.78 | | | $ | 53.00-$100.92 | | | $ | 47.60-$96.10 | |
| | | | | | |
2011 | | | | | | | | | | | | | | | | | | | | | | | | |
First half | | | 425 | | | | 118 | | | | 543 | | | $ | 51.38-$99.98 | | | $ | 53.00-$109.75 | | | $ | 51.73-$102.10 | |
Second half | | | 433 | | | | 119 | | | | 552 | | | | 51.38 - 99.98 | | | | 53.00 - 109.75 | | | | 51.73 - 102.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
12 months | | | 858 | | | | 237 | | | | 1,095 | | | | 51.38 - 99.98 | | | | 53.00 - 109.75 | | | | 51.73 - 102.10 | |
| | | | | | | | | | | | | | | | |
QEP RESOURCES, INC. | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | |
| | |
| | | 3 Months Ended September 30, | | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 (recast) | | | 2010 | | | 2009 (recast) | |
| | | (in millions, except per share amounts) | |
REVENUES | | | | | | | | | | | | | | | | |
Natural gas sales | | $ | 283.2 | | | $ | 260.0 | | | $ | 808.4 | | | $ | 802.9 | |
Oil and NGL sales | | | 59.2 | | | | 40.6 | | | | 166.9 | | | | 109.0 | |
Gathering, processing and other | | | 76.4 | | | | 72.5 | | | | 238.7 | | | | 189.0 | |
Marketing sales | | | 145.8 | | | | 114.9 | | | | 460.4 | | | | 311.9 | |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 564.6 | | | | 488.0 | | | | 1,674.4 | | | | 1,412.8 | |
| | | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Marketing purchases | | | 143.6 | | | | 113.9 | | | | 455.4 | | | | 301.2 | |
Lease operating expense | | | 32.8 | | | | 29.0 | | | | 89.7 | | | | 94.7 | |
Gathering, processing and other | | | 19.5 | | | | 17.9 | | | | 62.6 | | | | 54.3 | |
General and administrative | | | 24.7 | | | | 24.4 | | | | 75.6 | | | | 67.5 | |
Separation costs | | | 0.2 | | | | — | | | | 14.2 | | | | — | |
Production and property taxes | | | 19.7 | | | | 11.3 | | | | 61.6 | | | | 42.5 | |
Depreciation, depletion and amortization | | | 170.5 | | | | 132.4 | | | | 469.5 | | | | 401.7 | |
Exploration | | | 2.9 | | | | 6.3 | | | | 9.2 | | | | 18.3 | |
Abandonment and impairment | | | 12.2 | | | | 5.1 | | | | 29.1 | | | | 12.6 | |
| | | | | | | | | | | | | | | | |
Total Operating Expenses | | | 426.1 | | | | 340.3 | | | | 1,266.9 | | | | 992.8 | |
Net gain (loss) from asset sales | | | 10.8 | | | | (0.4 | ) | | | 12.3 | | | | 1.0 | |
| | | | | | | | | | | | | | | | |
OPERATING INCOME | | | 149.3 | | | | 147.3 | | | | 419.8 | | | | 421.0 | |
Interest and other income | | | 1.6 | | | | 0.8 | | | | 4.4 | | | | 3.9 | |
Income from unconsolidated affiliates | | | 1.1 | | | | 0.9 | | | | 2.5 | | | | 2.0 | |
Unrealized and realized (loss) on basis-only swaps | | | — | | | | (17.8 | ) | | | — | | | | (188.5 | ) |
Loss from early extinguishment of debt | | | (13.3 | ) | | | — | | | | (13.3 | ) | | | — | |
Interest expense | | | (22.6 | ) | | | (17.2 | ) | | | (62.8 | ) | | | (49.2 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | 116.1 | | | | 114.0 | | | | 350.6 | | | | 189.2 | |
Income taxes | | | (44.2 | ) | | | (42.0 | ) | | | (130.5 | ) | | | (69.3 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | 71.9 | | | | 72.0 | | | | 220.1 | | | | 119.9 | |
Discontinued operations, net of income tax | | | — | | | | 20.6 | | | | 43.2 | | | | 59.2 | |
| | | | | | | | | | | | | | | | |
NET INCOME | | | 71.9 | | | | 92.6 | | | | 263.3 | | | | 179.1 | |
Net income attributable to noncontrolling interest | | | (0.8 | ) | | | (0.6 | ) | | | (2.1 | ) | | | (1.7 | ) |
| | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO QEP | | $ | 71.1 | | | $ | 92.0 | | | $ | 261.2 | | | $ | 177.4 | |
| | | | | | | | | | | | | | | | |
| | | | |
EARNINGS PER COMMON SHARE - ATTRIBUTABLE TO QEP | | | | | | | | | | | | | | | | |
Basic from continuing operations | | $ | 0.40 | | | $ | 0.41 | | | $ | 1.24 | | | $ | 0.68 | |
Basic from discontinued operations | | | | | | | 0.12 | | | | 0.25 | | | | 0.34 | |
| | | | | | | | | | | | | | | | |
Basic total | | $ | 0.40 | | | $ | 0.53 | | | $ | 1.49 | | | $ | 1.02 | |
| | | | | | | | | | | | | | | | |
Diluted from continuing operations | | $ | 0.40 | | | $ | 0.40 | | | $ | 1.23 | | | $ | 0.67 | |
Diluted from discontinued operations | | | — | | | | 0.12 | | | | 0.24 | | | | 0.34 | |
| | | | | | | | | | | | | | | | |
Diluted total | | $ | 0.40 | | | $ | 0.52 | | | $ | 1.47 | | | $ | 1.01 | |
| | | | | | | | | | | | | | | | |
Weighted-Average Common Shares Outstanding | | | | | | | | | | | | | | | | |
Used in basic calculation | | | 175.4 | | | | 174.3 | | | | 175.2 | | | | 174.0 | |
Used in diluted calculation | | | 177.9 | | | | 176.3 | | | | 177.6 | | | | 176.1 | |
| | | | | | | | | | | | | | | | |
QEP RESOURCES, INC. | | | | | | | | | | | | | | | | |
OPERATIONS BY LINE OF BUSINESS | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 (recast) | | | 2010 | | | 2009
(recast) | |
| | | (in millions) | |
Revenues from Unaffiliated Customers | | | | | | | | | | | | | | | | |
QEP Energy | | $ | 343.5 | | | $ | 301.8 | | | $ | 979.0 | | | $ | 915.5 | |
QEP Field Services | | | 75.3 | | | | 71.2 | | | | 234.1 | | | | 184.7 | |
QEP Marketing and other | | | 145.8 | | | | 115.0 | | | | 461.3 | | | | 312.6 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 564.6 | | | $ | 488.0 | | | $ | 1,674.4 | | | $ | 1,412.8 | |
| | | | | | | | | | | | | | | | |
| | | | |
Revenues from Affiliated Companies | | | | | | | | | | | | | | | | |
QEP Field Services | | $ | 0.5 | | | $ | 0.5 | | | $ | 1.7 | | | $ | 1.4 | |
QEP Marketing and other | | | 121.0 | | | | 75.4 | | | | 376.7 | | | | 239.7 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 121.5 | | | $ | 75.9 | | | $ | 378.4 | | | $ | 241.1 | |
| | | | | | | | | | | | | | | | |
| | | | |
Operating Income | | | | | | | | | | | | | | | | |
QEP Energy | | $ | 112.2 | | | $ | 111.8 | | | $ | 317.0 | | | $ | 332.3 | |
QEP Field Services | | | 35.3 | | | | 35.1 | | | | 111.9 | | | | 78.9 | |
QEP Marketing and other | | | 2.0 | | | | 0.4 | | | | 5.1 | | | | 9.8 | |
Separation costs | | | (0.2 | ) | | | — | | | | (14.2 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 149.3 | | | $ | 147.3 | | | $ | 419.8 | | | $ | 421.0 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net Income (Loss) from Continuing Operations Attributable to QEP Resources | | | | | | | | | | | | | | | | |
QEP Energy | | $ | 58.6 | | | $ | 49.6 | | | $ | 165.0 | | | $ | 64.3 | |
QEP Field Services | | | 21.0 | | | | 21.5 | | | | 68.5 | | | | 47.4 | |
QEP Marketing and other | | | 2.0 | | | | 0.3 | | | | 3.6 | | | | 6.5 | |
Separation and early debt extinguishment costs | | | (10.5 | ) | | | — | | | | (19.1 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 71.1 | | | $ | 71.4 | | | $ | 218.0 | | | $ | 118.2 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
QEP RESOURCES, INC. | | | | | | | | | | | | | | | | |
SELECTED OPERATING STATISTICS | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
QEP Energy production volumes | | | | | | | | | | | | | | | | |
Natural gas (Bcf) | | | 55.0 | | | | 39.2 | | | | 149.2 | | | | 119.0 | |
Oil and natural gas liquids (MMbbl) | | | 1.1 | | | | 0.7 | | | | 2.9 | | | | 2.5 | |
Total production (Bcfe) | | | 61.7 | | | | 43.8 | | | | 166.9 | | | | 134.1 | |
Average daily production (MMcfe) | | | 670.3 | | | | 476.0 | | | | 611.2 | | | | 491.3 | |
QEP Energy average realized price, net to the well (including hedges) | | | | | | | | | | | | | | | | |
Natural gas (per Mcf) | | $ | 5.14 | | | $ | 6.64 | | | $ | 5.42 | | | $ | 6.75 | |
Oil and NGL (per bbl) | | $ | 53.74 | | | $ | 52.41 | | | $ | 56.83 | | | $ | 43.14 | |
| | | | |
QEP Field Services natural gas processing volumes | | | | | | | | | | | | | | | | |
NGL sales (MMgal) | | | 25.8 | | | | 28.1 | | | | 77.3 | | | | 74.3 | |
NGL sales price (per gal) | | $ | 0.81 | | | $ | 0.77 | | | $ | 0.91 | | | $ | 0.63 | |
Fee-based processing (millions of MMBtu) | | | | | | | | | | | | | | | | |
For unaffiliated customers (recast) | | | 29.4 | | | | 33.1 | | | | 87.9 | | | | 79.0 | |
For affiliated customers (recast) | | | 28.2 | | | | 22.8 | | | | 80.5 | | | | 71.5 | |
| | | | | | | | | | | | | | | | |
Total fee-based processing volumes | | | 57.6 | | | | 55.9 | | | | 168.4 | | | | 150.5 | |
| | | | | | | | | | | | | | | | |
Fee-based processing (per MMBtu) | | $ | 0.16 | | | $ | 0.15 | | | $ | 0.16 | | | $ | 0.16 | |
QEP Field Services natural gas gathering volumes (millions of MMBtu) | | | | | | | | | | | | | | | | |
For unaffiliated customers (recast) | | | 74.3 | | | | 70.4 | | | | 210.0 | | | | 230.4 | |
For affiliated customers (recast) | | | 52.3 | | | | 25.2 | | | | 144.5 | | | | 79.3 | |
| | | | | | | | | | | | | | | | |
Total gathering | | | 126.6 | | | | 95.6 | | | | 354.5 | | | | 309.7 | |
| | | | | | | | | | | | | | | | |
Gathering revenue (per MMBtu) | | $ | 0.31 | | | $ | 0.32 | | | $ | 0.32 | | | $ | 0.30 | |
QEP Marketing gas and oil marketing volumes (MMdthe) | | | 60.6 | | | | 52.6 | | | | 170.5 | | | | 156.5 | |
| | | | | | | | |
QEP RESOURCES, INC. | |
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS | | | | | | | | |
| | | September 30, | | | December 31, | |
| | | 2010
(Unaudited) | | | 2009 (recast) | |
| | | (in millions) | |
ASSETS | | | | | | | | |
Current Assets | | | | | | | | |
Cash and cash equivalents | | $ | 2.2 | | | $ | 19.3 | |
Accounts receivable, net | | | 297.8 | | | | 272.7 | |
Fair value of derivative contracts | | | 326.6 | | | | 128.2 | |
Inventories | | | 93.1 | | | | 91.8 | |
Prepaid expenses and other | | | 34.6 | | | | 29.2 | |
Deferred income taxes | | | — | | | | 21.2 | |
Current assets of discontinued operations | | | — | | | | 42.8 | |
| | | | | | | | |
Total Current Assets | | | 754.3 | | | | 605.2 | |
| | | | | | | | |
Property, Plant and Equipment | | | 8,198.5 | | | | 7,191.0 | |
Accumulated depreciation, depletion and amortization | | | (2,540.9 | ) | | | (2,099.7 | ) |
Cost of service properties of discontinued operations, net | | | — | | | | 593.9 | |
| | | | | | | | |
Net Property, Plant and Equipment | | | 5,657.6 | | | | 5,685.2 | |
| | | | | | | | |
Investment in unconsolidated affiliates | | | 44.5 | | | | 43.9 | |
Goodwill | | | 59.6 | | | | 60.1 | |
Fair value of derivative contracts | | | 186.6 | | | | 61.2 | |
Other noncurrent assets, net | | | 17.8 | | | | 10.0 | |
Noncurrent assets of discontinued operations | | | — | | | | 15.8 | |
| | | | | | | | |
Total Assets | | $ | 6,720.4 | | | $ | 6,481.4 | |
| | | | | | | | |
| | |
LIABILITIES AND EQUITY | | | | | | | | |
Current Liabilities | | | | | | | | |
Accounts payable and accrued expenses | | | 393.3 | | | | 426.3 | |
Fair value of derivative contracts | | | 131.2 | | | | 149.7 | |
Deferred income taxes | | | 58.3 | | | | — | |
Current portion of long-term debt | | | 58.5 | | | | — | |
Current liabilities of discontinued operations | | | — | | | | 88.9 | |
| | | | | | | | |
Total Current Liabilities | | | 641.3 | | | | 664.9 | |
| | | | | | | | |
Long-term debt, less current portion | | | 1,297.1 | | | | 1,348.7 | |
Deferred income taxes | | | 1,421.9 | | | | 1,175.8 | |
Asset retirement obligations | | | 144.2 | | | | 124.7 | |
Fair value of derivative contracts | | | 34.1 | | | | 140.6 | |
Other long-term liabilities | | | 83.8 | | | | 42.5 | |
Noncurrent liabilities of discontinued operations | | | — | | | | 175.5 | |
EQUITY | | | | | | | | |
Common Stock | | | 1.8 | | | | 1.7 | |
Additional paid-in capital | | | 388.6 | | | | 126.8 | |
Retained earnings | | | 2,365.9 | | | | 2,538.2 | |
Accumulated other comprehensive income | | | 288.4 | | | | 87.1 | |
| | | | | | | | |
Total Common Shareholders’ Equity | | | 3,044.7 | | | | 2,753.8 | |
Non-controlling interest | | | 53.3 | | | | 54.9 | |
| | | | | | | | |
Total Equity | | | 3,098.0 | | | | 2,808.7 | |
| | | | | | | | |
Total Liabilities and Equity | | $ | 6,720.4 | | | $ | 6,481.4 | |
| | | | | | | | |
| | |
QEP RESOURCES, INC. |
| |
| | PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) | | |
| | | | | | | | |
| | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 (recast) | |
| | | (in millions) | |
OPERATING ACTIVITIES | | | | | | | | |
Net income | | $ | 263.3 | | | $ | 179.1 | |
Discontinued operations, net of income tax | | | (43.2 | ) | | | (59.2 | ) |
Adjustments to reconcile net income to net cash provided from operating activities: | | | | | | | | |
Depreciation, depletion and amortization | | | 471.3 | | | | 402.4 | |
Deferred income taxes | | | 206.3 | | | | 52.2 | |
Abandonment and impairment | | | 29.1 | | | | 12.6 | |
Share-based compensation | | | 11.3 | | | | 10.2 | |
Dry exploratory well expense | | | — | | | | 3.6 | |
Net (gain) from asset sales | | | (12.3 | ) | | | (1.0 | ) |
(Income) from unconsolidated affiliates | | | (2.5 | ) | | | (2.0 | ) |
Distributions from unconsolidated affiliates and other | | | 2.1 | | | | 0.3 | |
Loss on early extinguishment of debt | | | 13.3 | | | | — | |
Unrealized (gain) loss on basis-only swaps | | | (90.0 | ) | | | 173.4 | |
Changes in operating assets and liabilities | | | (96.4 | ) | | | 83.9 | |
| | | | | | | | |
NET CASH PROVIDED FROM OPERATING ACTIVITIES | | | 752.3 | | | | 855.5 | |
| | | | | | | | |
| | |
INVESTING ACTIVITIES | | | | | | | | |
Capital expenditures | | | (1,035.9 | ) | | | (800.7 | ) |
Proceeds from disposition of assets | | | 25.4 | | | | 14.3 | |
Change in notes receivable | | | 52.9 | | | | 20.0 | |
| | | | | | | | |
NET CASH USED IN INVESTING ACTIVITIES | | | (957.6 | ) | | | (766.4 | ) |
| | | | | | | | |
| | |
FINANCING ACTIVITIES | | | | | | | | |
Checks outstanding in excess of cash balances | | | | | | | 7.8 | |
Long-term debt issued | | | 819.3 | | | | 349.5 | |
Long-term debt issued, net of issuance costs | | | (18.1 | ) | | | (2.5 | ) |
Current portion long-term debt repaid | | | (91.5 | ) | | | — | |
Long-term debt repaid | | | (721.5 | ) | | | (375.0 | ) |
Long-term debt extinguishment costs | | | (4.9 | ) | | | — | |
Change in notes payable | | | (39.3 | ) | | | (89.4 | ) |
Equity contributed | | | 252.0 | | | | — | |
Treasury Stock Held | | | (0.6 | ) | | | — | |
Dividends paid | | | (3.5 | ) | | | — | |
Distribution to noncontrolling interest | | | (3.7 | ) | | | (4.6 | ) |
| | | | | | | | |
NET CASH PROVIDED FROM (USED IN) FINANCING ACTIVITIES | | | 188.2 | | | | (114.2 | ) |
| | | | | | | | |
| | |
Change in cash and cash equivalents | | | (17.1 | ) | | | (25.1 | ) |
| | | | | | | | |
Cash provided by operating activities of discontinued operations | | | 68.6 | | | | 131.9 | |
Cash used in investing activities of discontinued operations | | | (39.9 | ) | | | (89.9 | ) |
Cash provided by financing activities of discontinued operations | | | (26.9 | ) | | | (37.2 | ) |
Effect of change in cash and cash equivalents of discontinued operations | | | (1.8 | ) | | | (4.8 | ) |
| | | | | | | | |
Change in cash and cash equivalents | | | (17.1 | ) | | | (25.1 | ) |
Beginning cash and cash equivalents | | | 19.3 | | | | 25.1 | |
| | | | | | | | |
Ending Cash and Cash Equivalents | | $ | 2.2 | | | $ | 0.0 | |
| | | | | | | | |
QEP RESOURCES, INC.
NOTE 1 NON-GAAP MEASURES
(Unaudited)
This release contains reference to a non-GAAP measure of earnings per diluted share from continuing operations excluding gains and losses from asset sales, unrealized gains and losses on basis-only swaps, separation costs and loss on early extinguishment of debt. Management believes earnings per diluted share excluding asset sales, unrealized basis-only swaps, separation costs and loss on early extinguishment of debt is an important measure of the Company’s operational performance relative to other gas and oil producing companies.
The following table calculates earnings per diluted share excluding gains and losses on assets sales, unrealized gains and losses on basis-only swaps, separations costs and loss on early extinguishment of debt:
| | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (in millions, except earnings per share) | |
Net income attributable to QEP Resources | | $ | 71.1 | | | $ | 92.0 | | | $ | 261.2 | | | $ | 177.4 | |
Less: Discontinued operations | | | — | | | | (20.6 | ) | | | (43.2 | ) | | | (59.2 | ) |
| | | | | | | | | | | | | | | | |
Net Income from continuing operations attributable to QEP Resources | | $ | 71.1 | | | $ | 71.4 | | | $ | 218.0 | | | $ | 118.2 | |
Exclusion of net (gain) loss from assets sales, unrealized (gain) loss on basis-only swaps, separation costs and loss on early extinguishment of debt from net income | | | | | | | | | | | | | | | | |
Net (gain) loss from asset sales | | | (10.8 | ) | | | 0.4 | | | | (12.3 | ) | | | (1.0 | ) |
Income taxes on net (gain) loss on asset sales | | | 3.9 | | | | (0.2 | ) | | | 4.5 | | | | 0.3 | |
Unrealized (gain) loss on basis-only swaps | | | (27.9 | ) | | | 10.7 | | | | (90.0 | ) | | | 173.4 | |
Income taxes on unrealized (gain) loss on basis-only swaps | | | 10.4 | | | | (4.0 | ) | | | 33.4 | | | | (64.5 | ) |
Separation costs | | | 0.2 | | | | — | | | | 14.2 | | | | — | |
Income taxes on separation costs | | | 2.1 | | | | — | | | | (3.3 | ) | | | — | |
Loss from early extinguishment of debt | | | 13.3 | | | | — | | | | 13.3 | | | | — | |
Income taxes on loss from early extinguishment of debt | | | (5.1 | ) | | | — | | | | (5.1 | ) | | | — | |
| | | | | | | | | | | | | | | | |
After-tax (gain) loss on assets sales, unrealized (gain) loss on basis-only swaps, separation costs and loss from early extinguishment of debt | | | (13.9 | ) | | | 6.9 | | | | (45.3 | ) | | | 108.2 | |
| | | | | | | | | | | | | | | | |
Net income attributable to QEP Resources excluding (gain) loss from assets sales, unrealized (gain) loss on basis-only swaps, separation costs and loss from early extinguishment of debt | | $ | 57.2 | | | $ | 78.3 | | | $ | 172.7 | | | $ | 226.4 | |
| | | | | | | | | | | | | | | | |
|
EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO QEP RESOURCES | |
Diluted | | $ | 0.40 | | | $ | 0.40 | | | $ | 1.23 | | | $ | 0.67 | |
Diluted after-tax (gain) loss from asset sales, unrealized (gain) loss on basis-only swaps, separation costs and loss from early extinguishment of debt | | | (0.08 | ) | | | 0.03 | | | | (0.26 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | |
| | | | |
Earnings per diluted share attributable to QEP Resources excluding asset sales, unrealized (gain) loss on basis only swaps, separation costs and loss from early extinguishment of debt | | $ | 0.32 | | | $ | 0.43 | | | $ | 0.97 | | | $ | 1.28 | |
| | | | | | | | | | | | | | | | |
| | | | |
Weighted-Average Common Shares Outstanding | | | | | | | | | | | | | | | | |
Diluted | | | 177.9 | | | | 176.3 | | | | 177.6 | | | | 176.1 | |
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.
The following table reconciles QEP Resources’ net income to EBITDA:
| | | | | | | | | | | | | | | | |
| | | 3 Months Ended September 30, | | | 9 Months Ended September 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (in millions) | |
Net income attributable to QEP Resources | | $ | 71.1 | | | $ | 92.0 | | | $ | 261.2 | | | $ | 177.4 | |
Net income attributable to non-controlling interest | | | 0.8 | | | | 0.6 | | | | 2.1 | | | | 1.7 | |
| | | | | | | | | | | | | | | | |
Net Income | | | 71.9 | | | | 92.6 | | | | 263.3 | | | | 179.1 | |
Discontinued operations, net of tax | | | | | | | (20.6 | ) | | | (43.2 | ) | | | (59.2 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 71.9 | | | | 72.0 | | | | 220.1 | | | | 119.9 | |
Unrealized (gain) loss on basis-only swaps | | | (27.9 | ) | | | 10.7 | | | | (90.0 | ) | | | 173.4 | |
Net (gain) loss from asset sales | | | (10.8 | ) | | | 0.4 | | | | (12.3 | ) | | | (1.0 | ) |
Interest and other income | | | (1.6 | ) | | | (0.8 | ) | | | (4.4 | ) | | | (3.9 | ) |
Income taxes | | | 44.2 | | | | 42.0 | | | | 130.5 | | | | 69.3 | |
Interest expense | | | 22.6 | | | | 17.2 | | | | 62.8 | | | | 49.2 | |
Separation costs | | | 0.2 | | | | — | | | | 14.2 | | | | — | |
Loss from early extinguishment of debt | | | 13.3 | | | | — | | | | 13.3 | | | | — | |
Depreciation, depletion and amortization | | | 170.5 | | | | 132.4 | | | | 469.5 | | | | 401.7 | |
Abandonment and impairment | | | 12.2 | | | | 5.1 | | | | 29.1 | | | | 12.6 | |
Exploration | | | 2.9 | | | | 6.3 | | | | 9.2 | | | | 18.3 | |
| | | | | | | | | | | | | | | | |
EBITDA | | $ | 297.5 | | | $ | 285.3 | | | $ | 842.0 | | | $ | 839.5 | |
| | | | | | | | | | | | | | | | |
