Domestic energy explorer
QEP Resources Inc.
) reported strong second-quarter 2014 results on the back of higher
natural gas equivalent price and production.
The company reported earnings per share - adjusted for special
items - of 38 cents, up 8.6% from the prior-year quarter level of
35 cents. The bottom line also beat the Zacks Consensus Estimate of
Quarterly revenues of $936.7 million increased about 24.7% from
second-quarter 2013 and surpassed the Zacks Consensus Estimate of
QEP Resources' overall production during the second quarter stood
at 83.9 billion cubic feet equivalent (Bcfe), highlighting a 7.7%
improvement from the previous-year quarter. Notably, gas accounts
for 58% of the total production. A significant increase in
production in the Williston Basin and Pinedale region aided the
Natural gas volumes deteriorated 15% year over year to 48.6 billion
cubic feet (Bcf) while liquid volumes improved 67.6% to 5,866.6
thousand barrels (MBbl).
QEP Resources' average realized natural gas price in the quarter
stood at $4.25 per thousand cubic feet (Mcf), almost on par with
the year-ago quarter. However, average oil price realization
decreased 7% to $83.77 per barrel.
Overall net realized equivalent price averaged $7.22 per thousand
cubic feet equivalent (Mcfe) in the quarter, reflecting a 12% rise
from the year-ago figure.
As of Jun 30, 2014, QEP Resources had cash and cash equivalents of
$702.3 million and long-term debt of $3,910.8 million, representing
a debt-to-capitalization ratio of 50.6%.
QEP Resources raised its 2014 production guidance to 289−304 Bcfe
from 274−298 Bcfe. The company also lifted its 2014 capital
investment projection to $1,815−$1,915 million from $1,705-$1,805
Zacks Rank & Other Stock to Consider
QEP Resources, in its present form, came into existence following
the 2010 spin-off of Salt Lake City, UT-based Questar Corporation's
) oil and gas exploration and production business into a separate,
independent, publicly traded entity.
Currently, QEP Resources carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at better-ranked players in the same
industry like Callon Petroleum Company (
) and Carrizo Oil & Gas Inc. (
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
QUESTAR (STR): Free Stock Analysis Report
QEP RESOURCES (QEP): Free Stock Analysis Report
CARRIZO OIL&GAS (CRZO): Free Stock Analysis
CALLON PETE-DEL (CPE): Free Stock Analysis
To read this article on Zacks.com click here.