QEP Resources Reports Third Quarter 2012 Financial and Operational Results

  QEP Resources Reports Third Quarter 2012 Financial and Operational Results

Business Wire

DENVER -- October 30, 2012

QEP Resources, Inc. (NYSE: QEP) reported Adjusted EBITDA (a non-GAAP measure)
for the third quarter 2012 of $328.7 million, compared to $353.7 million in
the third quarter 2011, a 7% decrease. QEP Resources reported a net loss
during the third quarter 2012 of $3.1 million, or $0.02 per diluted share,
compared to net income of $101.5 million, or $0.57 per diluted share, in the
third quarter 2011. Net income includes non-cash gains and losses associated
with the change in the fair value of derivative instruments, gains and losses
from asset sales, costs associated with the early extinguishment of debt and
non-cash price-related impairment charges. Excluding these items, the
Company’s Adjusted Net Income (a non-GAAP measure) was $32.7 million, or $0.19
per diluted share, in the third quarter 2012 compared to $83.6 million, or
$0.47 per diluted share, in the third quarter 2011. The lower Adjusted Net
Income is primarily due to lower natural gas and NGL prices in the third
quarter 2012 compared to 2011. A reconciliation of Adjusted EBITDA and
Adjusted Net Income to net income is provided within the financial tables of
this release.

Third Quarter 2012 Highlights

  *On September 27, 2012, QEP Energy completed the previously announced
    acquisition of approximately 27,600 net acres and 72 gross producing wells
    in the Williston Basin for an aggregate adjusted purchase price of
    approximately $1.4 billion, subject to post closing adjustments.

  *QEP Energy reported record net production of 81.5 Bcfe in the third
    quarter 2012, an increase of 15% when compared to the prior-year period.
    The growth was driven primarily by increased crude oil and NGL production.
  *QEP Energy delivered a 56% increase in crude oil production and a 55%
    increase in NGL production in the third quarter 2012, when compared to the
    prior-year period.
  *QEP Field Services’ (Field Services) NGL sales volumes increased by 3%,
    gathering volumes by 2% and total fee-based processing volumes by 2% in
    the third quarter 2012 compared to 2011.

“QEP achieved a number of significant accomplishments in the third quarter of
2012,” said Chuck Stanley, Chairman, President and CEO of QEP Resources. “QEP
Energy's third quarter production increased to a new record, up 15% compared
to last year. The record production was driven by an increase in crude oil and
NGL volumes that were both up over 50% from a year ago. Crude oil and NGL
represented 21% of QEP Energy's total production volumes in the third quarter,
up from 15% a year ago."

Crude oil and NGL revenues increased to 48% of field-level revenues in the
third quarter of 2012 from 32% in the third quarter of 2011.

"With the successful completion of our previously announced Bakken/Three Forks
property acquisition in North Dakota's Williston Basin, combined with an
aggressive capital allocation focus on higher-return crude oil and
liquids-rich gas plays, we now have a solid platform to drive continued growth
of crude oil production next year and beyond," continued Stanley. "At QEP
Field Services, processing, gathering and NGL sales volumes all increased, but
financial performance was adversely impacted by lower NGL sales prices that
compressed keep-whole gas processing margins. As we described in our August
conference call announcing the North Dakota property acquisition, we continue
to examine various deleveraging options and are pleased with our progress
toward determining a course of action.”


QEP Financial Results Summary

Adjusted EBITDA by Subsidiary
              Three Months Ended                         Nine Months Ended
                 September 30,                                 September 30,
                 2012         2011         Change        2012           2011         Change
                 (in millions)                                                                        
QEP Energy       $ 262.8         $ 267.3         (2   )%       $ 789.3           $ 757.0         4    %
QEP Field        68.0            84.8            (20  )%       223.8             233.1           (4   )%
Services
QEP
Marketing        (2.1    )       1.6            (231 )%       (0.2      )       6.0            (103 )%
and other
Adjusted         $ 328.7        $ 353.7        (7   )%       $ 1,012.9        $ 996.1        2    %
EBITDA^(1)
                                                                                                 
^(1) See attached schedule for a reconciliation of Adjusted EBITDA to net income.


QEP Energy

  *Natural gas, crude oil and NGL net production increased to 81.5 Bcfe in
    the third quarter 2012 compared to 70.7 Bcfe in 2011. Crude oil production
    increased 56%, NGL production increased 55%, and natural gas production
    increased 8% in the third quarter 2012 compared to 2011.
  *Adjusted EBITDA decreased 2% compared to the third quarter 2011, driven by
    a 16% decrease in the net realized price for natural gas and 23% decrease
    in the net realized price for NGL, mostly offset by a 15% increase in
    production.
  *Crude oil and NGL revenues increased 39% compared to the third quarter
    2011 and represented approximately 48% of field-level production revenues.
  *Capital investment (on an accrual basis) in the first nine months of 2012
    was $2.4 billion. Investments included $990.7 million in drilling,
    completion and other expenditures (including $0.1 million of dry hole
    exploration expense) and $1.4 billion in property acquisitions.
  *The slides for the third quarter 2012 with maps and other supporting
    materials referred to in this release are posted on the Company’s website
    www.qepres.com.

QEP Field Services

  *QEP Field Services’ Adjusted EBITDA decreased 20% in the third quarter
    2012 compared to the prior-year period, primarily due to a 32% decrease in
    net realized NGL prices, and a 52% decrease in other gathering revenue
    related to the elimination of a third-party interruptible processing
    agreement for certain gas volumes in the Northern Region, partially offset
    by a 3% increase in NGL sale volumes.
  *Capital investment (on an accrual basis) for the first nine months of 2012
    totaled $141.2 million.

QEP Resources

  *The Company issued $650 million of 5.25% Senior Notes due May 2023. The
    proceeds from the Senior Notes were used to fund a portion of the third
    quarter property acquisition in North Dakota.

QEP 2012 & 2013 Guidance

QEP Resources has revised its full-year 2012 guidance for commodity prices and
provided initial 2013 guidance. The Company’s guidance incorporates commodity
price derivative positions in place on the date of this release and other
assumptions summarized in the table below:

              
                       Guidance and Assumptions
                               2012                           2013
                                  Current       Previous         Current
                                  Forecast         Forecast         Forecast
                                  (in millions)
QEP Resources Adjusted            $1,400 -         $1,400 -         $1,525 -
EBITDA^(1)                        $1,425           $1,450           $1,675
QEP Energy capital                $1,320 -         $1,320 -         $1,480 -
investment^(2)                    $1,370           $1,370           $1,630
QEP Field Services capital        $170             $170             $120
investment
QEP Marketing capital             $1               $1               $0
investment
Corporate capital                 $9               $9               $25
investment
Total QEP Resources capital       $1,500 -         $1,500 -         $1,625 -
investment^(2)                    $1,550           $1,550           $1,775
QEP Energy production -           315 - 320        310 - 315        325 - 330
Bcfe
NYMEX gas price per               $3.50 -          $2.25 -          $3.50 -
MMBtu^(3)                         $4.00            $3.25            $4.50
NYMEX crude oil price per         $85.00 -         $85.00 -         $85.00 -
bbl^(3)                           $95.00           $95.00           $95.00
NYMEX/Rockies basis               $0.15 -          $0.20 -          $0.15 -
differential per MMBtu^(3)        $0.10            $0.15            $0.10
NYMEX/Midcontinent basis          $0.20 -          $0.15 -          $0.20 -
differential per MMBtu^(3)        $0.15            $0.10            $0.15
                                                                    

         Due to the forward-looking nature of this non-GAAP financial measure
         for future periods, information to reconcile it to the most directly
^(1)   comparable GAAP financial measure is not available at this time as
         management is unable to project special items or mark-to-market
         adjustments for future periods.
^(2)     Excludes $1.4 billion cost of the 2012 North Dakota property
         acquisition.
         For remaining 2012 and 2013 forecasted volumes that are not protected
^(3)     by commodity price derivative contracts. See attached schedule at the
         end of this release for summary of Commodity Derivative Positions in
         place on the date of this release.
         

“Following the completion of our North Dakota property acquisition, we expect
2013 will be a year of dramatic change in QEP's production mix,” continued
Stanley. “With over half of our 2013 capital investment going toward
developing the Bakken and Three Forks formations, we expect our crude oil and
NGL production to increase approximately 70% and 33%, respectively, over 2012
levels and represent approximately 31% of total 2013 forecast production. Even
with this significant increase in liquids production, we expect modest overall
production growth in 2013. Our discipline in capital allocation will lead to a
minimal level of spending in the Haynesville causing production in that area
to decline approximately 30% year-over-year in 2013, negatively impacting both
QEP Energy and QEP Field Services. While the increase in natural gas prices
seen in the futures curve is expected to be a positive development for QEP
Energy, the associated increased shrink cost will have a negative impact on
Field Services' profitability. Despite the expected startup of the Iron Horse
II plant and the expansion of the fractionator at Blacks Fork, we anticipate
Field Services operating income will decline in 2013. While we expect modest
overall production growth and market headwinds in Field Services, higher
margin oil growth is expected to propel mid-teens growth in Adjusted EBITDA
for QEP Resources in 2013; furthermore, we expect this trend to continue into
2014, and at current forward prices for natural gas, oil and NGL's, we
anticipate EBITDA could grow approximately 20% in 2014 from the midpoint of
2013 guidance on production growth of approximately 10%. We estimate 2014 oil
and NGL production will represent approximately 41% of total 2014 forecast
production, almost double the 2012 percentage.”

Operations Summary

QEP Energy

Williston Basin: Continued growth in crude oil production on 117,000 acre
Bakken/Three Forks leasehold

On September 27, 2012, QEP closed on the previously announced acquisition of
27,600 net acres of producing leasehold in McKenzie and Williams Counties,
North Dakota. Going forward, this area will be referred to as South Antelope.
Including the recently acquired property, at the end of the third quarter the
Company operated 73 producing wells, including 36 Bakken wells, 36 Three Forks
Formation wells and 1 dual lateral producing from both the Bakken and Three
Forks Formations. In addition, the Company has a working interest in 177
producing outside-operated wells. During the quarter, the company completed
and turned to sales five operated wells in which QEP owned an average working
interest of 99%.

During the third quarter 2012, and excluding the acquired property, QEP's
Bakken/Three Forks net production averaged 6,748 Boe/day. The net production
from the acquired properties averaged an additional approximate 8,600 Boe/day
at the time of closing.

At the end of the third quarter, QEP had 12 operated wells being drilled
(including seven wells at intermediate casing) and 9 QEP-operated wells that
had been drilled to total depth, cased and were waiting on completion. QEP has
an average 83% working interest in these operated wells that were drilling or
waiting on completion. Completion activities for all wells drilled from a pad
(or a well-pod on a pad) are delayed until all wells have been drilled and
cased. At the end of the third quarter, the Company also had interests in 15
outside-operated wells being drilled and 17 outside-operated wells that were
drilled and cased and waiting on completion. The Company's working interest in
these outside-operated wells averages approximately 4%.

The Company currently has five rigs operating in the Bakken/Three Forks play
(two in the South Antelope Area and three within the Fort Berthold
Reservation). QEP currently estimates that completed well costs for a typical
QEP-operated long-lateral Bakken or Three Forks well will average
approximately $11 million for the balance of 2012.

Slides 5-7 depict QEP's acreage and activity in the Bakken/Three Forks play.

Pinedale Anticline: Approximately 100 new well completions expected for the
full-year 2012

During the third quarter 2012, the Company's net production at Pinedale
averaged 304 MMcfed, of which 22% was oil and NGL.

Drilling and completion efficiencies have allowed QEP to maintain
industry-leading average gross completed well costs of approximately $4.1
million per well at Pinedale. Average drill time from spud to total depth
during the first nine months of 2012 was 13.2 days. A new QEP drill time
record of 8.6 days was set during the third quarter 2012, beating the previous
record by more than a day.

QEP suspends Pinedale completion operations during the coldest months of the
winter, generally from December to mid-March. In 2012, completion operations
resumed in early March, and through the end of the third quarter QEP had
completed and turned to sales 86 new wells (average working interest of 73%)
and there were 44 wells that have been drilled and cased awaiting completion.
The Company now expects to complete a total of approximately 100 wells during
2012.

Please refer to slide 8 for additional details on the Company's Pinedale
operations.

Uinta Basin: Continued development drilling in the liquids-rich Lower
Mesaverde Play

During the third quarter 2012, Uinta Basin production averaged 70 MMcfed of
which 25 MMcfed was from the Lower Mesaverde play. QEP has two operated rigs
drilling vertical wells targeting liquids-rich gas in stacked discontinuous
sands in the Lower Mesaverde Formation.

QEP is continuing construction of two “Pinedale-style” multi-well pads in the
play and plans to initially drill 20-acre density development wells from an
average of two pads per square mile. The pads and wellbore geometries will be
designed to allow for future 10-acre density development wells. Average
measured depth for a typical Lower Mesaverde well in the play is approximately
11,000 feet.

At the end of the third quarter, the Company had 49 producing wells in the
play, 29 of which were completed during 2012. QEP intends to complete
approximately 40 wells in the play during 2012. QEP has a 100% working
interest in the prospective acreage within the Red Wash Unit.

QEP is also operating a third rig in the Uinta Basin that is drilling
horizontal and vertical wells targeting multiple oil-bearing limestone and
sandstone reservoirs within the lower Green River Formation, at an average
drill depth of 5,500 feet. At the end of the third quarter, QEP had completed
six (three vertical and three horizontal) of the 11 Company-operated oil wells
planned for 2012 within the Uinta Basin. QEP will have an average working
interest of 73% in the 2012 oil wells.

Slides 9 and 10 depict QEP's acreage and additional details of the Lower
Mesaverde play.

Powder River Basin: QEP completes second and third operated Sussex Formation
crude oil wells; additional well waiting on completion

In the Powder River Basin of Wyoming, QEP completed and turned to sales two
Company-operated horizontal Sussex Formation oil wells during the third
quarter. At the end of the third quarter, there was one Company-operated
horizontal Sussex Formation well waiting on completion. In addition to the
recent QEP-operated activity, the Company also has an average 22% working
interest in two outside-operated horizontal Sussex Formation wells that have
been on production for more than one year.

QEP currently estimates average gross completed well costs of approximately
$6.5 to $7.0 million with estimated ultimate recoverable reserves of 450 to
525 Mboe for a typical horizontal Sussex well. QEP has approximately 40,000
net leasehold acres in the Spearhead Ranch area of the Powder River Basin and
intends to drill additional wells targeting the Sussex Formation, as well as
other zones, including the Shannon, Niobrara and Frontier formations.

Slide 11 shows QEP's acreage and activity in the Powder River Basin oil play.

Woodford “Cana”: Currently drilling 80-acre density development wells in the
liquids-rich core of the play

During the third quarter 2012, QEP's net production from the Woodford “Cana”
play averaged 45 MMcfed. At the end of the third quarter, QEP operated 29
producing horizontal Cana wells and had working interests in an additional 238
producing Cana wells that are operated by others.

During the third quarter, the Company participated in 17 additional horizontal
Woodford “Cana” Shale completed wells operated by others in which QEP has
working interests ranging from less than 1% to 51%.

QEP has two operated rigs currently drilling 80-acre horizontal development
wells in which the Company has a 75% working interest. Also, there are eight
wells in which QEP has a 100% working interest that have been drilled to total
depth and cased and are scheduled for completion by the end of the fourth
quarter.

Slide 12 depicts QEP's acreage and additional details on the Cana play.

Granite Wash, Marmaton and Tonkawa: Horizontal development in the Texas
Panhandle and Western Oklahoma

During the third quarter 2012, net production from the Texas Panhandle Granite
Wash play (vertical and horizontal wells) averaged 41 MMcfed. As of the end of
the third quarter, QEP had a working interest in a total of 89 producing
horizontal Granite Wash/Atoka Wash wells.

During the third quarter, the Company completed one QEP-operated Missourian
Kansas City Formation horizontal well in Wheeler County, Texas and
participated in seven outside-operated Granite Wash wells in the Texas
Panhandle. QEP will take over as Operator for production of three Kansas City
“B” wells (51% working interest) from the company that drilled and completed
the wells, referred to on slide 13 as well numbers 5, 6 and 7, which were
completed in mid-September with an average peak 24-hour rate of 4,300 Boepd.
One QEP-operated well in Wheeler County, Texas was drilling at the end of the
third quarter.

During the third quarter, QEP completed four Marmaton oil wells with an
average peak 24-hour rate of approximately 300 Boe/day. The Company has an
average 91% working interest in the new wells. The Company also has an average
17% working interest in two outside-operated Tonkawa wells that were completed
during the quarter with an average peak 24-hour rate of 422 Boe/day and an
average 9% working interest in two outside-operated Tonkawa wells that were
drilling.

See slide 13 for details on the Granite Wash play.

Haynesville: No operated drilling activity in the Haynesville Shale play of NW
Louisiana

During the third quarter 2012, the Company's Haynesville net production
averaged 261 MMcfed and Cotton Valley/Hosston net production averaged 42
MMcfed. In response to current natural gas prices, QEP released its last
operated drilling rig in the Haynesville Shale play in early July of this year
and has not completed any additional Company-operated Haynesville wells since
April 2012. QEP has five operated wells drilled and cased (48% working
interest) and currently plans to defer completion of these wells until 2013.
The Company operates 123 producing wells in the play and has a working
interest in 124 producing wells that are operated by others. The Company
participated with a 1.5% working interest in one outside-operated Haynesville
well that was being completed at the end of the third quarter. The Company
also participated with an 11% working interest in a horizontal Lower Cotton
Valley well that came on line in the third quarter at an initial 24-hour rate
of 17 MMcfed.

Refer to slide 14 for additional information on QEP's Haynesville activities.

QEP Field Services

Field Services’ third quarter 2012 gathering volumes were up 2%, NGL sales
volumes were up 3%, and fee-based processing volumes were up 2% compared to
the prior-year quarter.

Processing margin (total processing plant revenues less plant shrink,
transportation, fractionation and operating expenses) was $34.7 million in the
third quarter 2012 compared to $43.1 million in the third quarter 2011, a 19%
decrease, primarily due to a decrease in the keep-whole margin received (NGL
sales revenues less shrink, transportation and fractionation expenses) of 46%
between the two periods.

Gathering margin (total gathering revenues less gathering related operating
expenses) was $42.9 million in the third quarter 2012 compared to $47.4
million in the third quarter 2011, a 9% decrease, primarily due to a decrease
in other gathering revenue related to the elimination of a third-party
interruptible processing agreement for certain gas volumes in the Northern
Region. The short-term processing arrangement was in effect until the Blacks
Fork II processing plant was put into service during the third quarter 2011.

Approximately 80% of Field Services’ third quarter 2012 net operating revenue
was derived from fee-based gathering and processing activities compared to 72%
in the third quarter 2011.

Construction on Iron Horse II, a 150 MMcfed cryogenic gas processing plant in
the Uinta Basin, is proceeding as planned. The plant should be operational by
early 2013. Fifty percent of the processing capacity in this new facility is
contracted to a third-party customer under a fee-based processing agreement
with the remaining capacity available to QEP Energy and other third-party
customers.

During the third quarter, construction continued on Field Services' 10,000 Bbl
per day NGL fractionator expansion at QEP’s Blacks Fork plant in southwestern
Wyoming. When complete in mid-2013, NGL fractionation capacity at Blacks Fork
will total 15,000 barrels per day. To support this expansion, QEP is doubling
existing railcar loading capacity at Blacks Fork to facilitate access to what
are often higher-value local, regional, and national NGL markets.

Third Quarter 2012 Results Conference Call

QEP Resources’ management will discuss third quarter 2012 results in a
conference call on Wednesday, October 31, 2012, beginning at 11:00 a.m. EDT.
The conference call can be accessed at www.qepres.com. You may also
participate in the conference call by dialing 877-257-5561 in the U.S. or
Canada and 706-902-0993 for international calls, and then entering the
conference ID # 37424430. A replay of the teleconference will be available on
the website immediately after the call through November 30, 2012, or by
dialing 855-859-2056 in the U.S. or Canada and 404-537-3406 for international
calls, and then entering the conference ID # 37424430. In addition, QEP’s
slides for the third quarter 2012, with updated maps showing QEP’s leasehold
and current activity for key operating areas discussed in this release, can be
found on the Company’s website.

About QEP Resources, Inc.

QEP Resources, Inc. (NYSE: QEP) is a leading independent natural gas and crude
oil exploration and production company focused in two major regions: the
Northern Region (primarily in the Rockies and the Williston Basin) and the
Southern Region (primarily Oklahoma, Louisiana, and the Texas Panhandle) of
the United States. QEP Resources also gathers, compresses, treats, processes
and stores natural gas. For more information, visit QEP Resources’ website at:
www.qepres.com.

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, operating income, production and capital
investment for 2012 and related assumptions for such guidance; higher natural
gas prices and their impact on QEP; plans to drill and complete wells;
estimated average gross completed well costs; average estimated ultimate
recoveries per well; completion dates and capacity for new projects of QEP
Field Services; operatorship of certain wells; and remaining locations to
drill wells. 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; global geopolitical and macroeconomic
factors; general economic conditions; including interest rates; changes in
local, regional, national and global demand for natural gas, oil and NGL;
natural gas, NGL and oil prices; impact of new laws and regulations; including
regulations regarding the use of hydraulic fracture stimulation and the
implementation of the Dodd-Frank Act; drilling results; shortages of oilfield
equipment, services and personnel; operating risks such as unexpected drilling
conditions; weather conditions; changes in maintenance and construction costs
and possible inflationary pressures; permitting delays; the availability and
cost of credit; outcome of contingencies such as legal proceedings; 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, 2011. QEP Resources
undertakes no obligation to publicly correct or update the forward-looking
statements in this news release, in other documents, or on the website to
reflect future events or circumstances. All such statements are expressly
qualified by this cautionary statement.

Disclosures regarding Estimated Ultimate Recovery (EUR)

The Securities and Exchange Commission requires oil and gas companies, in
their filings with the SEC, to disclose proved reserves that a company has
demonstrated by actual production or through reliable technology to be
economically and legally producible at specific prices and existing economic
and operating conditions. The SEC permits optional disclosure of probable and
possible reserves, however QEP has made no such disclosures in its filings
with the SEC. QEP uses certain terms in its periodic news releases and other
presentation materials such as “estimated ultimate recovery” or “EUR,”
“resource potential,” and “net resource potential.” These estimates are by
their nature more speculative than estimates of proved, probable or possible
reserves and accordingly are subject to substantially more risks of actually
being realized. The SEC guidelines strictly prohibit us from including such
estimates in filings with the SEC. Investors are urged to closely consider the
disclosures about the Company’s reserves in its Annual Report on Form 10-K for
the year ended December 31, 2011, and in other reports on file with the SEC.


QEP RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                    Three Months Ended             Nine Months Ended
                       September 30,                       September 30,
                       2012         2011                2012         2011
                      (in millions, except per share amounts)
REVENUES
Natural gas            $ 170.3         $ 309.8             $ 470.4         $ 921.1
sales
Oil sales              117.7           76.9                335.7           220.6
NGL sales              67.5            79.3                247.0           191.0
Gathering,
processing and         46.3            57.1                141.9           162.6
other
Purchased gas,
oil and NGL            140.6          356.8              449.9          810.6   
sales
Total Revenues         542.4          879.9              1,644.9        2,305.9 
OPERATING
EXPENSES
Purchased gas,
oil and NGL            142.6           352.7               455.9           803.3
expense
Lease operating        42.2            37.0                122.8           104.1
expense
Natural gas, oil
and NGL
transport &            36.3            27.5                111.5           73.2
other handling
costs^(1)
Gathering,
processing and         22.1            27.0                66.4            79.4
other
General and            41.7            28.7                114.5           89.1
administrative
Production and         24.3            27.7                68.4            78.5
property taxes
Depreciation,
depletion and          234.1           189.0               647.4           566.4
amortization
Exploration            2.2             2.4                 6.3             7.5
expenses
Abandonment and        9.5            5.7                71.8           16.4    
impairment
Total Operating        555.0           697.7               1,665.0         1,817.9
Expenses
Net gain from          —              1.2                1.5            1.4     
asset sales
OPERATING (LOSS)       (12.6   )       183.4               (18.6   )       489.4
INCOME
Realized and
unrealized gains       36.1            —                   334.7           —
on derivative
contracts^(2)
Interest and
other (loss)           (0.2    )       (0.7    )           2.4             (0.5    )
income
Income from
unconsolidated         2.3             2.3                 5.6             4.5
affiliates
Loss from early
extinguishment         —               (0.7    )           (0.6    )       (0.7    )
of debt
Interest expense       (30.0   )       (22.8   )           (82.9   )       (67.0   )
(LOSS) INCOME
BEFORE INCOME          (4.4    )       161.5               240.6           425.7
TAXES
Income taxes           2.3            (59.1   )           (86.5   )       (156.0  )
NET (LOSS)             (2.1    )       102.4               154.1           269.7
INCOME
Net income
attributable to        (1.0    )       (0.9    )           (2.7    )       (2.2    )
noncontrolling
interest
NET (LOSS)
INCOME                 $ (3.1  )       $ 101.5            $ 151.4        $ 267.5 
ATTRIBUTABLE TO
QEP
                                                                           
Earnings Per
Common Share
Attributable to
QEP
Basic total            $ (0.02 )       $ 0.58              $ 0.85          $ 1.52
Diluted total          $ (0.02 )       $ 0.57              $ 0.85          $ 1.50
                                                                           
Weighted-average
common shares
outstanding
Used in basic          177.9           176.6               177.6           176.5
calculation
Used in diluted        177.9           178.5               178.6           178.5
calculation


         During the fourth quarter 2011, QEP revised its reporting of
         transportation and handling costs. Transportation and handling costs,
^(1)   previously netted against revenues, have been recast on the Condensed
         Consolidated Statements of Operations from revenues to “Natural gas,
         oil and NGL transport & other handling costs” for the 2011 periods
         presented herein.
         On January 1, 2012, QEP discontinued hedge accounting. During the
         first three quarters of 2012, commodity derivative realized gains and
         losses from derivative contract settlements were included in
^(2)     "Realized and unrealized gains on derivative contracts" whereas
         during the first three quarters of 2011, commodity derivative gains
         and losses from derivative contract settlements were included in each
         of the respective revenue categories.
         
         

QEP RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
                                  September 30,                   December 31,
                                                    
                                  2012                            2011
                                 (in millions)
ASSETS
Current Assets
Cash and cash equivalents         $  —                            $  —
Accounts receivable, net          274.3                           397.4
Fair value of derivative          187.2                           273.7
contracts
Inventories, at lower of
average cost or market
Gas, oil and NGL                  14.0                            16.2
Materials and supplies            94.9                            87.6
Prepaid expenses and other        49.4                           43.7       
Total Current Assets              619.8                          818.6      
Property, Plant and
Equipment (successful
efforts method for gas and
oil properties)
Proved properties                 9,882.4                         8,172.4
Unproved properties               983.4                           326.8
Midstream field services          1,605.2                         1,463.6
Marketing and other               56.3                           49.8       
Total Property, Plant and         12,527.3                       10,012.6   
Equipment
Less Accumulated
Depreciation, Depletion and
Amortization
Exploration and production        3,977.6                         3,339.2
Midstream field services          342.9                           297.5
Marketing and other               16.9                           14.6       
Total Accumulated
Depreciation, Depletion and       4,337.4                        3,651.3    
Amortization
Net Property, Plant and           8,189.9                        6,361.3    
Equipment
Investment in                     41.7                            42.2
unconsolidated affiliates
Goodwill                          59.5                            59.5
Fair value of derivative          35.2                            123.5
contracts
Other noncurrent assets           50.0                           37.6       
TOTAL ASSETS                      $  8,996.1                     $  7,442.7 
LIABILITIES AND EQUITY
Current Liabilities
Checks outstanding in             $  27.5                         $  29.4
excess of cash balances
Accounts payable and              464.6                           457.3
accrued expenses
Production and property           56.3                            40.0
taxes
Interest payable                  23.7                            24.4
Fair value of derivative          2.7                             1.3
contracts
Deferred income taxes             41.9                           85.4       
Total Current Liabilities         616.7                          637.8      
Long-term debt                    3,180.7                         1,679.4
Deferred income taxes             1,505.8                         1,484.7
Asset retirement                  176.6                           163.9
obligations
Fair value of derivative          4.1                             —
contracts
Other long-term liabilities       135.2                           124.8
Commitments and
contingencies
EQUITY
Common stock - par value
$0.01 per share; 500.0
million shares authorized;        1.8                             1.8
178.5 million and 177.2
million shares issued,
respectively
Treasury stock - 0.4
million and 0.4 million           (11.6       )                   (13.1      )
shares, respectively
Additional paid-in capital        455.8                           431.4
Retained earnings                 2,805.6                         2,673.5
Accumulated other                 77.4                           207.9      
comprehensive income
Total Common Shareholders'        3,329.0                         3,301.5
Equity
Noncontrolling interest           48.0                           50.6       
Total Equity                      3,377.0                        3,352.1    
TOTAL LIABILITIES AND             $  8,996.1                     $  7,442.7 
EQUITY
                                                                             
                                                                             


QEP RESOURCES, INC.

CONSOLIDATED CASH FLOWS

(Unaudited)
                                     Nine Months Ended
                                        September 30,
                                        2012                2011
                                        (in millions)
OPERATING ACTIVITIES
Net income                              $  154.1                     $ 269.7
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation, depletion and             647.4                        566.4
amortization
Deferred income taxes                   54.7                         155.9
Abandonment and impairment              71.8                         16.4
Share-based compensation                19.5                         16.5
Amortization of debt issuance           3.7                          2.4
costs and discounts
Dry exploratory well expense            0.1                          0.5
Net gain from asset sales               (1.5     )                   (1.4    )
Income from unconsolidated              (5.6     )                   (4.5    )
affiliates
Distributions from unconsolidated       6.1                          7.6
affiliates and other
Non-cash loss on early                  —                            0.7
extinguishment of debt
Unrealized gain on derivative           (32.8    )                   (86.7   )
contracts
Changes in operating assets and         54.5                        12.2    
liabilities
Net Cash Provided by Operating          972.0                       955.7   
Activities
INVESTING ACTIVITIES
Property acquisitions                   (1,400.3 )                   (40.7   )
Property, plant and equipment,
including dry exploratory well          (1,040.7 )                   (957.7  )
expense
Proceeds from disposition of            5.3                         7.4     
assets
Net Cash Used in Investing              (2,435.7 )                   (991.0  )
Activities
FINANCING ACTIVITIES
Checks outstanding in excess of         (1.9     )                   7.2
cash balances
Long-term debt issued                   1,450.0                      —
Long-term debt issuance costs           (17.0    )                   (10.5   )
paid
Long-term debt repaid                   (6.7     )                   (58.5   )
Proceeds from credit facility           933.5                        280.0
Repayments of credit facility           (876.0   )                   (170.0  )
Other capital contributions             (4.2     )                   0.1
Dividends paid                          (10.7    )                   (10.6   )
Excess tax benefit on share-based       2.0                          1.5
compensation
Distribution from Questar               —                            0.2
Distribution to noncontrolling          (5.3     )                   (4.1    )
interest
Net Cash Provided by Financing          1,463.7                     35.3    
Activities
Change in cash and cash                 —                            —
equivalents
Beginning cash and cash                 —                           —       
equivalents
Ending cash and cash equivalents        $  —                        $ —     
                                                                             
                                                                             


QEP RESOURCES, INC.
OPERATIONS BY LINE OF BUSINESS
(Unaudited)

QEP Energy - Production by Region
                      Three Months Ended                  Nine Months Ended
                         September 30,                          September 30,
                         (in Bcfe)
                         2012      2011      Change       2012       2011       Change
Northern Region
Pinedale                 28.0         21.6         30  %        73.9          55.6          33  %
Uinta Basin^(1)          6.4          4.8          33  %        16.9          16.2          4   %
Legacy                   7.3         5.6         30  %        20.6         15.1         36  %
Total Northern           41.7        32.0        30  %        111.4        86.9         28  %
Region
Southern Region
Haynesville/Cotton       27.9         26.8         4   %        86.8          80.9          7   %
Valley
Midcontinent             11.9        11.9        —   %        37.1         33.5         11  %
Total Southern           39.8        38.7        3   %        123.9        114.4        8   %
Region
Total production         81.5        70.7        15  %        235.3        201.3        17  %


^(1)   Includes 1.6 Bcfe from the first quarter 2011 production from prior
         periods due to change in ownership interest in a federal unit.
         
         


QEP Energy - Total Production
              Three Months Ended                      Nine Months Ended
                 September 30,                              September 30,
                 2012         2011       Change       2012         2011         Change
QEP Energy
Production
Volumes
Natural          64.5            59.8          8   %        188.0           175.9           7    %
gas (Bcf)
Oil (Mbbl)       1,442.6         922.6         56  %        3,973.1         2,559.2         55   %
NGL (Mbbl)       1,386.7        894.4        55  %        3,906.2        1,675.0        133  %
Total
production       81.5            70.7          15  %        235.3           201.3           17   %
(Bcfe)
Average
daily            885.8           767.7         15  %        858.8           737.2           16   %
production
(MMcfe)
                                                                                                 
                                                                                                 


QEP Energy - Prices^(1)
               Three Months Ended                        Nine Months Ended
                  September 30,                                September 30,
                  2012^(2)     2011^(3)     Change       2012         2011         Change
Natural gas
(per Mcf)
Average
field-level       $ 2.64          $ 3.99                       $ 2.50          $ 4.05
price
Commodity
derivative        1.34           0.73                        1.51           0.69    
impact
Net
realized          $ 3.98         $ 4.72         (16 )%       $ 4.01         $ 4.74         (15 )%
price
Oil (per
bbl)
Average
field-level       $ 81.60         $ 82.42                      $ 84.49         $ 85.82
price
Commodity
derivative        1.83           0.91                        0.55           0.37    
impact
Net
realized          $ 83.43        $ 83.33        —   %        $ 85.04        $ 86.19        (1  )%
price
NGL (per
bbl)
Average
field-level       27.83           39.44                        34.38           42.43
price
Commodity
derivative        2.46           —                           1.66           —       
impact
Net
realized          $ 30.29        $ 39.44        (23 )%       $ 36.04        $ 42.43        (15 )%
price
                                                                                               

^(1)   Prior year is recast to reflect exclusion of natural gas, oil and NGL
         transport & other handling costs.
         The commodity derivative impact is reported below operating (loss)
^(2)     income in "Realized and unrealized gains on derivative contracts"
         beginning January 1, 2012, in the Condensed Consolidated Statement of
         Operations.
         The impact of settled commodity derivatives that qualified for hedge
         accounting was reported in "Revenues" in the Condensed Consolidated
^(3)     Statement of Operations.The impact of the commodity derivatives
         that did not qualify for hedge accounting are reported below
         operating (loss) income in "Realized and unrealized gains on
         derivative contracts."
         


QEP Energy - Operating Expenses
                  Three Months Ended                      Nine Months Ended
                     September 30,                              September 30,
                     2012        2011        Change       2012        2011        Change
                     (per Mcfe)
Depreciation,
depletion and        $ 2.67         $ 2.47         8   %        $ 2.54         $ 2.60         (2  )%
amortization
Lease
operating            0.53           0.54           (2  )%       0.53           0.53           —   %
expense
Natural gas,
oil and NGL
transport &          0.73           0.64           14  %        0.71           0.65           9   %
other handling
costs
General and
administrative       0.39           0.33           18  %        0.40           0.35           14  %
expense
Allocated
interest             0.30           0.29           3   %        0.30           0.30           —   %
expense
Production           0.27          0.37          (27 )%       0.27          0.37          (27 )%
taxes
Total
Operating            $ 4.89        $ 4.64        5   %        $ 4.75        $ 4.80        (1  )%
Expenses
                                                                                                  
                                                                                                  

              
QEP Field Services
                  Three Months Ended                      Nine Months Ended
                  September 30,                              September 30,
                  2012        2011        Change       2012         2011         Change
QEP Field
Services
Gathering
Operating
Statistics
Natural gas
gathering
volumes           129.3          126.9          2   %        386.9           367.0           5   %
(millions
of MMBtu)
Gathering
revenue           $ 0.34         $ 0.33         3   %        $ 0.34          $ 0.33          3   %
(per MMBtu)
                                                                                             
QEP Field
Services
Gathering
Margin (in
millions)
Gathering         $ 43.9         $ 41.9         5   %        $ 131.6         $ 120.0         10  %
Other             8.0            16.5           (52 )%       28.6            59.2            (52 )%
Gathering
Gathering         (9.0   )       (11.0  )       (18 )%       (26.9   )       (35.3   )       (24 )%
(expense)
Gathering         $ 42.9        $ 47.4        (9  )%       $ 133.3        $ 143.9        (7  )%
margin
                                                                                             
QEP Field
Services
Processing
Margin (in
millions)
NGL               $ 28.9         $ 44.1         (34 )%       $ 112.7         $ 119.9         (6  )%
sales^(3)
Realized
gains from
commodity         1.9            —              —   %        6.3             —               —   %
derivative
contract
settlements
Processing
(fee-based)       18.2           15.4           18  %        51.8            37.6            38  %
revenues
Other
processing        5.4            1.7            218 %        8.4             1.7             394 %
fees
Processing        (4.7   )       (3.1   )       52  %        (12.1   )       (8.9    )       36  %
(expense)
Processing
plant fuel        (8.1   )       (12.5  )       (35 )%       (26.6   )       (34.1   )       (22 )%
and shrink
(expense)
Natural
gas, oil
and NGL
transport &       (6.9   )       (2.5   )       176 %        (27.7   )       (4.6    )       502 %
other
handling
costs
Processing        $ 34.7        $ 43.1        (19 )%       $ 112.8        $ 111.6        1   %
margin
Keep-whole
processing        $ 15.8         $ 29.1         (46 )%       $ 64.7          $ 81.2          (20 )%
margin^(1)
                                                                                             
QEP Field
Services
Processing
Operating
Statistics
Natural gas
processing
volumes
NGL sales         34.9           34.0           3   %        121.5           98.2            24  %
(MMgal)
Average net
realized
NGL sales         $ 0.88         $ 1.30         (32 )%       $ 0.98          $ 1.22          (20 )%
price (per
gal)^(2)
Total
fee-based
processing        65.0           63.8           2   %        189.2           181.1           4   %
volumes (in
millions of
MMBtu)
Average
fee-based
processing        $ 0.28         $ 0.24         17  %        $ 0.27          $ 0.21          29  %
revenue
(per MMBtu)


^(1)   NGL sales less processing plant fuel and shrink less natural gas, oil
         and NGL transport & other handling costs.
         Average net realized NGL sales price per gallon is calculated as NGL
^(2)     sales including realized gains from commodity derivative contracts
         settlements divided by NGL sales volumes.
         NGL sales for the three and nine months ended September 30, 2011,
         have been recast to reflect QEP's revised reporting of its
         transportation and handling costs.In addition, revenues for the
^(3)     three and nine months ended September 30, 2011, reflect the impact of
         QEP's settled derivative contracts which during the three and nine
         months ended September 30, 2012, are reflected below operating (loss)
         income.
         

QEP RESOURCES, INC.

NON-GAAP MEASURES

(Unaudited)

This release contains references to the non-GAAP measure of Adjusted EBITDA.
Management defines Adjusted EBITDA as net income before the following items:
unrealized gains and losses on derivative contracts, gains and losses from
asset sales, interest and other income, income taxes, interest expense,
depreciation, depletion, and amortization, abandonment and impairment,
exploration expense and loss on early extinguishment of debt. Management uses
Adjusted EBITDA to assess the Company's operating results. Management believes
Adjusted EBITDA is an important measure of the Company's cash flow and
liquidity and its ability to incur and service debt, fund capital expenditures
and make distributions to shareholders and is an important measure for
comparing the Company's financial performance to other gas and oil producing
companies. In addition, Adjusted EBITDA is a part of the Company's debt
covenants as defined in its revolving credit and term loan agreements.

The following tables reconcile QEP Resources’ and its subsidiaries’ net income
to Adjusted EBITDA:

                                                                
                      Three Months Ended                               Nine Months Ended
                      September 30,                                    September 30,
                      2012         2011         Change           2012           2011         Change
QEP Resources         (in millions)
Net (loss)
income                $ (3.1  )       $ 101.5         $ (104.6 )       $ 151.4           $ 267.5         $ (116.1 )
attributable to
QEP Resources
Net income
attributable to       1.0            0.9            0.1             2.7              2.2            0.5      
non-controlling
interest
Net (loss)            (2.1    )       102.4           (104.5   )       154.1             269.7           (115.6   )
income
Unrealized loss
(gain) on             57.1            (27.9   )       85.0             (32.8     )       (86.7   )       53.9
derivative
contracts
Net gain from         —               (1.2    )       1.2              (1.5      )       (1.4    )       (0.1     )
asset sales
Interest and
other loss            0.2             0.7             (0.5     )       (2.4      )       0.5             (2.9     )
(income)
Income taxes          (2.3    )       59.1            (61.4    )       86.5              156.0           (69.5    )
Interest              30.0            22.8            7.2              82.9              67.0            15.9
expense
Loss on early
extinguishment        —               0.7             (0.7     )       0.6               0.7             (0.1     )
of debt
Depreciation,
depletion and         234.1           189.0           45.1             647.4             566.4           81.0
amortization
Abandonment and       9.5             5.7             3.8              71.8              16.4            55.4
impairment
Exploration           2.2            2.4            (0.2     )       6.3              7.5            (1.2     )
expenses
Adjusted EBITDA       $ 328.7        $ 353.7        $ (25.0  )       $ 1,012.9        $ 996.1        $ 16.8   
                                                                                                         
QEP Energy
Net (loss)
income                $ (26.2 )       $ 58.3          $ (84.5  )       $ 51.6            $ 148.2         $ (96.6  )
attributable to
QEP Energy
Unrealized loss
(gain) on             50.9            (27.9   )       78.8             (37.9     )       (86.7   )       48.8
derivative
contracts
Net gain from         —               (1.2    )       1.2              (1.5      )       (1.4    )       (0.1     )
asset sales
Interest and
other loss            0.2             0.7             (0.5     )       (2.2      )       0.5             (2.7     )
(income)
Income taxes          (15.3   )       34.4            (49.7    )       32.4              87.7            (55.3    )
Interest              24.1            20.5            3.6              71.1              60.8            10.3
expense
Depreciation,
depletion and         217.4           174.4           43.0             597.7             524.0           73.7
amortization
Abandonment and       9.5             5.7             3.8              71.8              16.4            55.4
impairment
Exploration           2.2            2.4            (0.2     )       6.3              7.5            (1.2     )
expenses
Adjusted EBITDA       $ 262.8        $ 267.3        $ (4.5   )       $ 789.3          $ 757.0        $ 32.3   
                                                                                                         
                                                                                                         
                      Three Months Ended                               Nine Months Ended
                      September 30,                                    September 30,
                      2012            2011            Change           2012              2011            Change
QEP Field             (in millions)
Services
Net income
attributable to       $ 28.7          $ 42.0          $ (13.3  )       $ 107.4           $ 114.2         $ (6.8   )
QEP Field
Services
Net income
attributable to       1.0            0.9            0.1             2.7              2.2            0.5      
non-controlling
interest
Net income            29.7            42.9            (13.2    )       110.1             116.4           (6.3     )
Unrealized loss
(gain) on             2.5             —               2.5              (2.0      )       —               (2.0     )
derivative
contracts
Net gain from         —               0.1             (0.1     )       —                 —               —
asset sales
Interest and          —               —               —                (0.1      )       —               (0.1     )
other (income)
Income taxes          16.5            24.0            (7.5     )       59.2              65.6            (6.4     )
Interest              3.5             3.8             (0.3     )       9.4               10.4            (1.0     )
expense
Depreciation,
depletion and         15.8           14.0           1.8             47.2             40.7           6.5      
amortization
Adjusted EBITDA       $ 68.0         $ 84.8         $ (16.8  )       $ 223.8          $ 233.1        $ (9.3   )
                                                                                                         
QEP Marketing &
Other
Net (loss)
income
attributable to       $ (5.6  )       $ 1.2           $ (6.8   )       $ (7.6    )       $ 5.1           $ (12.7  )
QEP Marketing
and other
Unrealized loss
on derivative         3.7             —               3.7              7.1               —               7.1
contracts
Net gain from         —               (0.1    )       0.1              —                 —               —
asset sales
Interest and          —               —               —                (0.1      )       —               (0.1     )
other (income)
Income taxes          (3.5    )       0.7             (4.2     )       (5.1      )       2.7             (7.8     )
Interest              2.4             (1.5    )       3.9              2.4               (4.2    )       6.6
expense
Loss on early
extinguishment        —               0.7             (0.7     )       0.6               0.7             (0.1     )
of debt
Depreciation,
depletion and         0.9            0.6            0.3             2.5              1.7            0.8      
amortization
Adjusted EBITDA       $ (2.1  )       $ 1.6          $ (3.7   )       $ (0.2    )       $ 6.0          $ (6.2   )
                                                                                                                  
                                                                                                                  

This release also contains references to the non-GAAP measure of Adjusted Net
Income. Management defines Adjusted Net Income as earnings excluding gains and
losses from asset sales, non-cash price-related asset impairments, costs from
early extinguishment of debt and unrealized gains and losses on derivative
contracts. Management believes Adjusted Net Income is an important measure of
the Company’s operational performance relative to other gas and oil producing
companies.

The following table reconciles net income attributable to QEP Resources’ to
Adjusted Net Income:

                                                  
                         Three Months Ended              Nine Months Ended
                         September 30,                  September 30,
                         2012         2011            2012         2011
                         (in millions, except per earnings per share)
Net (loss) income
attributable to          $ (3.1  )       $ 101.5         $ 151.4         $ 267.5
QEP Resources
Adjustments to net
income
Net gain from            —               (1.2    )       (1.5    )       (1.4    )
asset sales
Income taxes on
net gain on asset        —               0.4             0.6             0.5
sales
Unrealized loss
(gain) on                57.1            (27.9   )       (32.8   )       (86.7   )
derivative
contracts
Income taxes on
unrealized loss
(gain) on                (21.3   )       10.3            12.2            32.2
derivative
contracts
Loss on early
extinguishment of        —               0.7             0.6             0.7
debt
Income taxes on
loss from early          —               (0.3    )       (0.2    )       (0.3    )
extinguishment of
debt
Non-cash
price-related            —               0.2             49.3            0.2
impairment charge
Income taxes on
non-cash                 —              (0.1    )       (18.3   )       (0.1    )
price-related
impairment charge
Total after-tax
adjustments to net       35.8           (17.9   )       9.9            (54.9   )
income
Adjusted net
income                   $ 32.7         $ 83.6         $ 161.3        $ 212.6 
attributable to
QEP Resources
                                                                         
Earnings per
Common Share
attributable to
QEP
Diluted earnings         $ (0.02 )       $ 0.57          $ 0.85          $ 1.50
per share
Diluted after-tax
adjustments to net       0.21           (0.10   )       0.06           (0.31   )
income per share
Diluted Adjusted
Net Income per           $ 0.19         $ 0.47         $ 0.91         $ 1.19  
share
                                                                         
Weighted-average
common shares
outstanding
Diluted^(1)              178.7           178.5           178.6           178.5
                                                                         
Weighted-average
common shares
outstanding
diluted Non-GAAP
reconciliation^(1)
Weighted-average
common shares
outstanding used         177.9
in GAAP diluted
calculation
Potential number
of shares issuable
upon exercise of
in-the-money stock       0.8     
options under the
long-term stock
incentive plan
Weighted-average
common shares
outstanding used         178.7   
in Non-GAAP
diluted
calculation


         The three months ended September 30, 2012, diluted common shares
         outstanding for purposes of calculating Diluted Adjusted Net Income
         per share include potential increases in shares that could result
^(1)   from the exercise of in-the-money stock options. These potential
         shares are excluded for the three months ended September 30, 2012, in
         calculating earnings per share for GAAP purposes, because the effect
         is antidilutive due to the Company's net loss for GAAP purposes.
         
         

The following table presents open 2012 derivative positions as of October 26,
2012:


QEP Energy Commodity Derivative Positions
                                                   Swaps       Collars
                                                               Average
              Type of                          Total           price          Floor         Ceiling
Year          Contract       Index                             per            price     
                                               Volumes                                      price
                                                               unit
                                               (in
                                               millions)
Natural
gas                                            (MMBtu)
sales
   2012       Swap           NYMEX             19.3            $ 4.72
   2012       Swap           IFPEPL^(1)        1.8             $ 4.70
   2012       Swap           IFNPCR^(2)        22.1            $ 4.67
   2012       Swap           IFCNPTE^(3)       2.8             $ 2.66
   2013       Swap           NYMEX             40.2            $ 3.74
   2013       Swap           IFNPCR^(2)        65.7            $ 5.66
   2014       Swap           NYMEX             18.3            $ 4.21
Oil                                            (Bbls)
sales
   2012       Swap           NYMEX WTI         1.3             $ 97.42
   2012       Collar         NYMEX WTI         0.4                            $ 87.50       $ 115.36
   2013       Swap           NYMEX WTI         5.1             $ 98.48
   2014       Swap           NYMEX WTI         1.8             $ 92.72
NGL                                            (Gals)
sales
   2012       Swap           Mt. Belvieu       3.9             $ 0.64
                             Ethane
   2012       Swap           Mt. Belvieu       5.8             $ 1.28
                             Propane
                                                                                            
                                                                                            


QEP Field Services Commodity Derivative Positions
                                                                      Average

             Type of                                 Total            Swap
Year      Contract     Index                              price
                                                     Volumes
                                                                      per
                                                                      gallon
                                                     (in
                                                     millions)
NGL                                                  (Gals)
sales
2012         Swap            Mt. Belvieu             3.9              $  0.64
                             Ethane
2012         Swap            Mt. Belvieu             1.9              $  1.28
                             Propane
                                                                         
                                                                         


QEP Marketing Commodity Derivative Positions
                                                                   Average
                                                   Total
Year                  Type of Contract  Index                  Swaps price
                                                   Volumes
                                                                   per MMBtu
                                                   (in millions)
Natural gas sales                                  (MMBtu)
2012                   Swap               IFNPCR   2.3             $    3.87
2013                   Swap               IFNPCR   3.9             $    3.79
Natural gas                                        (MMBtu)
purchases
2012                   Swap               IFNPCR   2.0             $    2.92
2013                   Swap               IFNPCR   0.1             $    2.59

Contact:

QEP Resources, Inc.
Investors:
Greg Bensen
Director, Investor Relations
303-405-6665
or
Media:
Noel Ryan
Director, Corporate Communications
303-405-6655
 
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