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QEP Resources Reports Estimated Fourth Quarter and Full Year 2012 Financial and Operating Results

  QEP Resources Reports Estimated Fourth Quarter and Full Year 2012 Financial
  and Operating Results

Business Wire

DENVER -- February 19, 2013

QEP Resources, Inc. (NYSE: QEP) ("QEP" or the "Company"), today reported
estimated fourth quarter and full year 2012 financial and operating results.
The Company reported a net loss during the fourth quarter 2012 of $23.1
million, or $0.13 per diluted share, compared to a net loss of $0.3 million
and no earnings per diluted share, in the fourth quarter 2011. For the year
ended December 31, 2012, QEP Resources reported net income of $128.3 million,
or $0.72 per diluted share, compared to $267.2 million, or $1.50 per diluted
share, for the comparable 2011 period. Net income or loss 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, non-cash price-related impairment charges and an
accrual for a litigation loss contingency. Excluding these items, the
Company’s Adjusted Net Income (a non-GAAP measure) was $227.9 million, or
$1.28 per diluted share, for the year ended December 31, 2012, compared to
$316.2 million or $1.77 per diluted share, for the comparable 2011 period.
Similarly, the Company's Adjusted Net Income was $59.8 million, or $0.33 per
diluted share, in the fourth quarter 2012 compared to $104.6 million, or $0.58
per diluted share, in the fourth quarter 2011. The lower Adjusted Net Income
was due primarily to lower natural gas and NGL prices, lower midstream NGL
sales volumes and prices, and higher depreciation, depletion and amortization
and other expenses in the fourth quarter 2012 compared to 2011.

Adjusted EBITDA (a non-GAAP measure) for the fourth quarter 2012 was $391.8
million, compared to $390.5 million in the fourth quarter 2011. For the year
ended December 31, 2012, the Company reported Adjusted EBITDA of $1,415.5
million compared to $1,386.6 million for the year ended December 31, 2011. A
reconciliation of Adjusted EBITDA and Adjusted Net Income to net income is
provided within the financial tables of this release.

Full Year 2012 Highlights

  *QEP Energy reported record net production of 319.2 Bcfe, an increase of
    16% when compared to 2011. The growth was driven primarily by increased
    crude oil and NGL production, which were up 69% and 97%, respectively.
  *Crude oil and NGL comprised 22% of QEP Energy's production compared to 14%
    in 2011.
  *QEP Energy grew estimated proved reserves 9%, or 322.3 Bcfe, driven
    primarily by a 76% (52 million barrel) increase in crude oil reserves and
    a 30% (23 million barrel) increase in NGL reserves. Excluding negative
    price-related revisions of 152.4 Bcfe, QEP Energy's estimated proved
    reserves grew by 13% from 2011.
  *QEP completed the largest acquisition in company history - the $1.4
    billion acquisition of approximately 125 million barrels of proved and
    probable reserves in the Williston Basin, (the "North Dakota
    Acquisition").

"I am pleased with QEP's accomplishments in 2012," said Chuck Stanley,
Chairman, President and CEO of QEP Resources. "QEP Energy's dramatic growth in
liquids production drove a 16% increase in total production compared to 2011.
Crude oil and NGL volumes represented 22% of QEP Energy's production in 2012,
a substantial increase from 14% in 2011. The positive impact of our North
Dakota Acquisition is clear - crude oil represented 17% of QEP Energy's
production in the fourth quarter 2012 compared to just 10% in the prior year
period and 11% in the third quarter 2012. QEP Energy's full year 2012 Adjusted
EBITDA grew 7% from 2011 levels despite a 15% decrease in the net realized
price of natural gas and a 24% decrease in the net realized price of NGL. QEP
Energy also grew estimated proved reserves by 9%, replacing 201% of 2012
production despite 245 Bcfe of mostly price-related negative reserve
revisions." The Company's 2012 year-end proved reserves totaled 3.9 Tcfe.

"QEP Field Services 2012 Adjusted EBITDA declined 12% from a year ago, due
primarily to lower NGL prices that resulted in lower keep-whole processing
margins," continued Stanley. "Field Service's fee-based processing revenues in
the fourth quarter 2012 were up 10% from the prior year on higher processing
volume and per-unit revenue. Field Services new Iron Horse II cryogenic
processing plant is in startup and commissioning and the 10,000 barrel per day
expansion of our fractionator at Blacks Fork remains on track for a mid-2013
startup.

"Results to date from the three QEP-operated wells completed on the South
Antelope property in North Dakota since last September continue to confirm our
expectations of strong well performance.All three wells had strong initial
production rates and average gross estimated ultimate recoveries of slightly
over one million barrels of oil equivalent per well.Despite the challenging
natural gas and NGL price environment, QEP remains well-positioned to grow crude
oil production profitably from our newly acquired North Dakota properties,"
concluded Stanley.

QEP Financial Results Summary

Adjusted EBITDA by Subsidiary
            Three Months Ended              Year Ended
             December 31,                     December 31,
             2012       2011       Change   2012         2011         Change
             (in millions)
QEP Energy   $ 333.5     $ 300.5     11  %    $ 1,133.6     $ 1,057.5     7   %
QEP Field    57.3        87.2        (34 )%   281.1         320.3         (12 )%
Services
QEP
Marketing    1.0        2.8        (64 )%   0.8          8.8          (91 )%
and other
Adjusted     $ 391.8    $ 390.5    —        $ 1,415.5    $ 1,386.6    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 14% to 83.9 Bcfe
    in the fourth quarter 2012 compared to 73.9 Bcfe in 2011. Crude oil, NGL
    and natural gas production increased 97%, 39%, and 1%, respectively, in
    the fourth quarter 2012 compared to 2011.
  *Adjusted EBITDA increased 11% compared to the fourth quarter 2011, driven
    by the 14% increase in production volumes offset by decreases of 12% and
    34%, respectively, in the net realized price for natural gas and NGL.
  *Crude oil and NGL revenues increased 52% compared to the fourth quarter
    2011 and represented approximately 56% of field-level production revenues.
  *Capital investment (on an accrual basis) for the year ended December 31,
    2012, was $2.7 billion. Investments included $1.3 billion in drilling,
    completion and other expenditures and $1.4 billion in property
    acquisitions.
  *QEP Energy recorded non-cash impairment charges of $58.3 million,
    before-tax, in the fourth quarter 2012 as a result of lower natural gas
    and NGL prices that impacted the carrying value of proved reserves in
    several Midcontinent Division (Oklahoma and Texas) and one Uinta Basin
    Division (not related to the Red Wash Lower Mesaverde project) successful
    efforts pools.
  *QEP Energy recorded an accrual for a litigation loss contingency of $104.2
    million, before-tax, in the fourth quarter 2012 related to a statewide
    royalty class action lawsuit in Oklahoma. On February 13, 2013, the
    parties to the litigation entered into a Stipulation and Agreement of
    Settlement, which is subject to court approval. For details, see our
    Current Report on Form 8-K filed with the SEC on February 15, 2013.
  *The slides for the fourth quarter 2012 with maps and other supporting
    materials referred to in this release are posted on the Company’s website
    at www.qepres.com.

QEP Field Services

  *QEP Field Services’ Adjusted EBITDA decreased 34% in the fourth quarter
    2012 compared to the prior-year period, due primarily to an 18% decrease
    in net realized NGL prices, a 45% decrease in NGL sales volumes as a
    result of ethane rejection (where ethane is left in the production stream
    and sold as natural gas) and a 14% decrease in other gathering revenue
    related to the elimination of a third-party interruptible gathering and
    processing agreement for certain gas volumes in the Northern Region,
    partially offset by a 10% increase in total fee-based processing revenues.
  *Capital investment (on an accrual basis) for the year ended December 31,
    2012 totaled $171.2 million.


QEP 2013 Guidance

QEP Resources has revised its full-year 2013 guidance due to changes in
commodity prices. The Company’s guidance incorporates commodity price
derivative positions in place on the date of this release, assumes full ethane
recovery, and other assumptions summarized in the table below:


Guidance and Assumptions

                                   2013
                                    Current Forecast        Previous Forecast
                                    (Adjusted EBITDA and capital investment
                                    shown in millions)
QEP Resources Adjusted              $1,500 - $1,650          $1,525 - $1,675
EBITDA^(1)
QEP Energy capital investment       $1,480 - $1,580          $1,480 - $1,630
QEP Field Services capital          $120                     $120
investment
QEP Marketing capital               $0                       $0
investment
Corporate capital investment        $25                      $25
Total QEP Resources capital         $1,625 - $1,725          $1,625 - $1,775
investment
QEP Energy production - Bcfe        325 - 330                325 - 330
NYMEX gas price per MMBtu^(2)       $3.25 - $4.25            $3.50 - $4.50
NYMEX crude oil price per           $90.00 - $100.00         $85.00 - $95.00
bbl^(2)
NYMEX /Rockies basis                $0.15 - $0.10            $0.15 - $0.10
differential per MMBtu^(2)
NYMEX/Midcontinent basis            $0.20 - $0.15            $0.20 - $0.15
differential per MMBtu^(2)
                                                             
^(1) Due to the forward-looking nature of this non-GAAP financial measure for
future periods, information to reconcile it to the most directly 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) For remaining 2013 forecast volumes that are not protected 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.



Proved Reserves Summary

QEP Energy's estimated proved reserves totaled 3.9 Tcfe at December 31, 2012,
up 9% from year-end 2011. Approximately 33% of total proved reserves at
year-end 2012 were crude oil and NGL compared to 24% at year-end 2011. Total
proved developed reserves comprised 2.1 Tcfe, or 54%, of the total reserves.
Additions and extensions were 572.5 Bcfe resulting from additions in the Uinta
Basin and Pinedale. Purchases of reserves in place were 313.8 Bcfe due
primarily to the North Dakota Acquisition. Negative price-related revisions
comprised 152.4 Bcfe of the total negative reserve revision of 244.8 Bcfe. A
reconciliation of reported quantities of proved reserves is summarized in the
table below:

                                                             
                          Natural Gas    Oil           NGL         Natural Gas
                                                                   Equivalents
                          (Bcf)          (MMbbl)       (MMbbl)     (Bcfe)
Balance at December       2,749.4        67.5          76.6        3,613.8
31, 2011
Revisions of previous     (240.6   )     (1.5    )     0.7         (244.8    )
estimates
Extensions and            330.6          17.3          23.0        572.5
discoveries
Purchase of reserves      32.3           42.0          4.9         313.8
in place
Sale of reserves in       —              —             —           —
place
Production                (249.3   )     (6.3    )     (5.3  )     (319.2    )
Balance at December       2,622.4       119.0        99.9       3,936.1   
31, 2012

Details on year-end 2012 and 2011 proved reserves by QEP Energy
division/operating area, proved reserve category and percentage of total
proved reserves comprised of crude oil and NGL (liquids) are as follows:
                                                                   
                          Total (in      % of total    PUD %       % liquids
                          Bcfe)
For the year ended
December 31, 2012
Northern Region
Pinedale                  1,530.8        39     %      41   %      23     %
Williston Basin           614.7          16     %      75   %      92     %
Uinta Basin               617.9          16     %      56   %      33     %
Legacy                    112.2          3      %      —           18     %
Southern Region
Haynesville/Cotton        530.5          13     %      42   %      —
Valley
Midcontinent              530.0         13     %      31   %      33     %
Total QEP Energy          3,936.1       100    %      46   %      33     %
                                                                   
For the year ended
December 31, 2011
Northern Region
Pinedale                  1,531.0        42     %      47   %      23     %
Williston Basin           259.0          7      %      75   %      94     %
Uinta Basin               393.6          11     %      46   %      23     %
Legacy                    128.6          4      %      —           15     %
Southern Region
Haynesville/Cotton        782.9          22     %      46   %      —
Valley
Midcontinent              518.7         14     %      36   %      31     %
Total QEP Energy          3,613.8       100    %      46   %      24     %
                                                                          


Operations Summary

QEP Energy

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

During the fourth quarter 2012, QEP Energy's Bakken/Three Forks net production
averaged 18,348 Boed. The Company completed and turned to sales 11 operated
wells, including two wells in the South Antelope Area (QEP Energy's average
working interest 99%) and nine wells within the Fort Berthold Reservation (QEP
Energy's average working interest 74%) during the fourth quarter.The South
Antelope wells were both completed in the Three Forks Formation and had an
average 24-hour initial production rate of 2,175 Boed.The Fort Berthold
Reservation completions included five wells (QEP Energy's working interest
76%) on the Independence Pad (three Three Forks Formation and two Bakken
Formation) with an average 24-hour initial production rate of 2,550 Boed; two
wells on a pad just west of the Independence Pad (QEP Energy's working
interest 75%, one Three Forks Formation and one Bakken Formation) with an
average 24-hour initial production rate of 2,450 Boed; and two eastern
delineation wells on a pad in T 148 N-R 91 W (QEP Energy's working interest
70%, one Three Forks Formation and one Bakken Formation) with an average
24-hour initial production rate of 965 Boed.


At the end of 2012, the Company operated 84 producing wells in the Williston
Basin, including 38 Bakken wells, 43 Three Forks wells and three dual lateral
horizontal wells producing from both the Bakken and Three Forks formations. In
addition, the Company has a working interest in 191 outside-operated producing
wells.

At the end of the fourth quarter, QEP Energy had 11 operated wells drilling or
at intermediate casing point and nine QEP Energy-operated wells awaiting
completion (QEP Energy's average working interest 87%). The Company also had
interests in 16 outside-operated wells being drilled (QEP Energy's average
working interest 7%) and 23 outside-operated wells awaiting completion (QEP
Energy's average working interest 3%) at the end of the fourth quarter.

At the end of 2012, QEP Energy had five rigs operating in the Bakken/Three
Forks play (two in the South Antelope Area and three within the Fort Berthold
Reservation). QEP Energy's operated completed well costs for a typical
long-lateral Bakken or Three Forks well averaged $11 million in the second
half of 2012.

Slides 6-8 depict QEP Energy's acreage and activity in the Bakken/Three Forks
play.

Pinedale Anticline: 102 new well completions in 2012

During the fourth quarter 2012, QEP Energy's Pinedale net production averaged
281 MMcfed, of which 21% was oil and NGL. In response to the decline in ethane
prices, QEP Energy began rejecting ethane from Pinedale production on December
1st. Ethane rejection results in approximately 7% less natural gas equivalent
sales volumes but, at current ethane prices, has a negligible impact on gross
revenues. The processing margins for Pinedale propane and heavier NGL
components remain positive.

During the fourth quarter 2012, QEP Energy completed and turned to sales 16
new Pinedale wells, for a total of 102 new producing wells in 2012 (QEP
Energy's average working interest 71%). QEP Energy 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 were suspended in November. At the end of 2012, the Company had 66
Pinedale wells awaiting completion.

Drilling and completion efficiencies have allowed QEP Energy to maintain
industry-leading average gross completed well costs of approximately $4.2
million per well at Pinedale. For the year, drill times from spud to total
depth averaged 12.8 days and a new record of 8.6 days was achieved.

At the end of 2012, QEP Energy had four rigs operating at Pinedale (including
one rig working in an area of Pinedale where QEP Energy is the operator but
does not own a working interest). The Company currently expects to complete a
total of approximately 110 wells during 2013, including 29 wells in which QEP
Energy is the designated operator but only owns a small overriding royalty
interest.

Please refer to slide 9 for additional details on the Company's Pinedale
operations.

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

During the fourth quarter 2012, Uinta Basin net production averaged 75 MMcfed
of which 35 MMcfed was from the Lower Mesaverde play. In response to the
decline in ethane prices, QEP Energy also commenced rejecting ethane from
Uinta Basin gas production in the quarter. Ethane rejection results in
approximately 7% less natural gas equivalent sales volumes but, at current
ethane prices, has a negligible impact on gross revenues. The processing
margins for Uinta Basin propane and heavier NGL components remain positive.

QEP Energy commenced development drilling with two rigs on “Pinedale-style”
multi-well pads in the Lower Mesaverde play during the fourth quarter and
initially plans to drill 20-acre density development wells. The pads and
wellbore geometries will be designed to allow for future 10-acre density
development wells. A seven well pilot program is currently underway to
ascertain the reserve potential of tighter, 10-acre density development.
Average measured depth for a typical Lower Mesaverde well is approximately
11,000 feet.

At the end of 2012, the Company had 57 producing wells in the Lower Mesaverde
play, eight of which were completed and turned to sales during the fourth
quarter for a total of 37 wells during 2012 (QEP Energy's 100% working
interest). QEP Energy has over 3,200 potential remaining locations in this
significant liquids-rich gas resource play.

In addition to Lower Mesaverde activity, at the end of 2012 the Company had
one rig drilling horizontal and vertical wells targeting multiple oil-bearing
limestone and sandstone reservoirs in the Lower Green River Formation, at an
average true vertical depth of 5,500 feet. During 2012, QEP Energy completed
10 Company-operated oil wells (four vertical and six horizontal) in the Uinta
Basin (QEP Energy's average working interest 72%).

Slides 10 and 11 depict QEP Energy's acreage and additional details of the
Lower Mesaverde play.

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

QEP Energy's net production from the Woodford “Cana” play averaged 48 MMcfed
during the fourth quarter 2012. The Company participated in 21
outside-operated horizontal Woodford “Cana” Shale wells that were completed
and turned to sales during the fourth quarter (QEP Energy's working interests
ranging from less than 1% to 13%).

At the end of the year, QEP Energy operated 33 producing horizontal Cana wells
(QEP Energy's average working interest 73%) and had working interests in an
additional 258 outside-operated producing Cana wells (QEP Energy's average
working interest 10%).

At the end of 2012, the Company had two operated rigs drilling 80-acre
horizontal infill development wells (QEP Energy's average working interest
75%) and there were eight QEP Energy-operated 80-acre infill wells in one
section awaiting completion (QEP Energy's working interest 100%). QEP Energy
also has a working interest in 26 outside-operated wells awaiting completion
(QEP Energy's working interests ranging from 1% to 4%).

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

Granite Wash: Horizontal development in the Texas Panhandle

QEP Energy's net production from the Texas Panhandle Granite Wash play
averaged 37 MMcfed during the fourth quarter 2012. During the fourth quarter
2012, QEP Energy participated in six outside-operated well completions in the
Kansas City and Lansing formations in the Texas Panhandle (QEP Energy's
average working interest 1.4%). At the end of 2012 the Company had one QEP
Energy-operated Cherokee Formation horizontal well awaiting completion (QEP
Energy's working interest 59%), one QEP Energy-operated Caldwell Formation
well drilling (QEP Energy's working interest 59%) and had interests in four
outside-operated Granite Wash wells awaiting completion (QEP Energy's working
interests ranging from 12% to 24%). At the end of the fourth quarter, QEP
Energy had a working interest in a total of 95 producing horizontal Granite
Wash/Atoka Wash wells.

See slide 13 for details on the Granite Wash play.

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

The Company's net Haynesville production averaged 238 MMcfed and Cotton
Valley/Hosston net production averaged 40 MMcfed during the fourth quarter
2012.

At the end of 2012, QEP Energy operated 126 producing wells in the play and
had working interests in 124 outside-operated producing wells.

In response to depressed natural gas prices, QEP Energy released its last
operated drilling rig in the Haynesville Shale play in early July 2012, and
did not complete any additional Company-operated Haynesville wells after April
2012. QEP Energy had five operated wells (48% average working interest)
awaiting completion at the end of 2012. The Company participated in one
outside-operated Haynesville well that was completed in the fourth quarter
(QEP Energy's working interest 2%).

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

QEP Field Services

QEP Field Services’ fourth quarter 2012 NGL sales volumes were down 45%,
fee-based processing volumes were up 4%, and gathering volumes were down 7%,
compared to the prior-year quarter.

Processing margin (total processing plant revenues less plant shrink,
transportation, fractionation, and operating expenses) was $29.0 million in
the fourth quarter 2012 compared to $53.6 million in the fourth quarter 2011,
a 46% decrease. The fourth quarter 2012 was negatively impacted by a 64%
decrease in keep-whole processing margins (NGL sales revenues less shrink,
transportation and fractionation expenses), due primarily to lower NGL prices.
Fee-based processing revenues were $18.3 million in the fourth quarter 2012, a
10% increase from the prior year period due to increases in total fee-based
processing volumes and average revenue per MMBtu.

Gathering margin (total gathering revenues less gathering related operating
expenses) was $38.8 million in the fourth quarter 2012 compared to $41.1
million in the fourth quarter 2011, a 6% decrease, due primarily to a decrease
in other gathering revenue and a decline in gathering volumes between the two
periods.

Approximately 81% of QEP Field Services’ fourth quarter 2012 net operating
revenue was derived from fee-based gathering and processing activities
compared to 62% in the fourth quarter 2011.

Construction on Iron Horse II, a 150 MMcfd cryogenic gas processing plant in
the Uinta Basin, is proceeding as planned. The plant is in the process of
startup and commissioning and is expected to be put into service during
February 2013. This new facility is contracted under long-term, fee-based
processing agreements with half of the capacity dedicated to a third-party
customer and the remaining capacity available to QEP Energy and third-party
customers.

During the fourth quarter, construction continued on QEP Field Services'
10,000 barrel per day NGL fractionation facility expansion at QEP’s Blacks
Fork facility in southwest Wyoming. When completed 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.

Estimates of key financial and operating data follow.


Fourth Quarter 2012 Results Conference Call

QEP Resources’ management will discuss fourth quarter and full year 2012
results in a conference call on Wednesday, February 20, 2013, beginning at
9:00 a.m. EST. The conference call can be accessed at www.qepres.com. You may
also participate in the conference call by dialing (877) 869-3847 in the U.S.
or Canada and (201) 689-8261 for international calls. A replay of the
teleconference will be available on the website immediately after the call
through March 21, 2013, or by dialing (877) 660-6853 in the U.S. or Canada and
(201) 612-7415 for international calls, and then entering the conference ID #
407780. In addition, QEP’s slides for the fourth 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:
estimated financial and operating results for the fourth quarter and year
ended December 31, 2012; forecasted Adjusted EBITDA, operating income,
production and capital investment for 2013 and related assumptions for such
guidance; plans to drill and complete wells; estimated average gross completed
well costs; estimated reserves; average estimated ultimate recoveries per well
and strong well performance; completion dates and capacity for new projects of
QEP Field Services; remaining locations to drill wells; ability to profitably
grow crude oil production from newly acquired properties; ethane rejection and
its impact; plans to double railcar loading capacity; and estimated accrual
for litigation loss contingencies. 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; elimination of
federal income tax deductions for oil and gas exploration and development;
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; inability to successfully integrate
acquired assets; inadequate supplies of water and/or lack of water disposal
sources; 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, 2012, and in other reports on file with the SEC.



QEP RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                    Three Months Ended             Year Ended
                     December 31,                    December 31,
                     2012           2011            2012         2011
REVENUES             (in millions, except per share amounts)
Natural gas sales    $  197.0        $  318.0        $  667.4      $ 1,239.1
Oil sales            196.9           103.6           532.6         324.2
NGL sales            75.1            118.8           322.1         309.8
Gathering,
processing and       39.7            38.2            181.6         200.8
other
Purchased gas,       196.2          274.7          646.1        1,085.3   
oil and NGL sales
Total Revenues       704.9          853.3          2,349.8      3,159.2   
OPERATING
EXPENSES
Purchased gas,
oil and NGL          199.7           273.8           655.6         1,077.1
expense
Lease operating      49.5            41.1            172.3         145.2
expense
Natural gas, oil
and NGL transport    37.4            29.0            148.9         102.2
& other handling
costs^(1)
Gathering,
processing and       21.6            27.9            88.0          107.3
other
General and          152.1           34.1            266.6         123.2
administrative
Production and       35.0            26.9            103.4         105.4
property taxes
Depreciation,
depletion and        257.5           199.0           904.9         765.4
amortization
Exploration          4.9             3.0             11.2          10.5
expenses
Abandonment and      61.6           202.0          133.4        218.4     
impairment
Total Operating      819.3           836.8           2,484.3       2,654.7
Expenses
Net gain from        (0.3      )     —              1.2          1.4       
asset sales
OPERATING (LOSS)     (114.7    )     16.5            (133.3    )   505.9
INCOME
Realized and
unrealized gains     107.2           —               441.9         —
on derivative
contracts^(2)
Interest and         4.2             4.6             6.6           4.1
other income
Income from
unconsolidated       1.2             1.0             6.8           5.5
affiliates
Loss from early
extinguishment of    —               —               (0.6      )   (0.7      )
debt
Interest expense     (40.0     )     (23.0     )     (122.9    )   (90.0     )
(LOSS) INCOME
FROM CONTINUING      (42.1     )     (0.9      )     198.5         424.8
OPERATIONS BEFORE
INCOME TAXES
Income taxes         20.0           1.6            (66.5     )   (154.4    )
NET (LOSS) INCOME    (22.1     )     0.7             132.0         270.4
Net income
attributable to      (1.0      )     (1.0      )     (3.7      )   (3.2      )
noncontrolling
interest
NET (LOSS) INCOME
ATTRIBUTABLE TO      $  (23.1  )     $  (0.3   )     $  128.3     $ 267.2   
QEP
                                                                   
Earnings Per
Common Share
Attributable to
QEP
Basic from
continuing           $  (0.13  )     $  (0.01  )     $  0.72       $ 1.51
operations
Diluted from
continuing           $  (0.13  )     $  —            $  0.72       $ 1.50
operations
                                                                   
Weighted-average
common shares
outstanding
Used in basic        178.3           176.7           177.8         176.5
calculation
Used in diluted      178.3           178.2           178.7         178.4
calculation
                                                                   
^(1) During the fourth quarter 2011, QEP revised its reporting of
transportation and handling costs. Transportation and handling costs,
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.

^(2) On January 1, 2012, QEP discontinued hedge accounting. During the year
ended December 31, 2012, commodity derivative realized gains and losses from
derivative contract settlements were included in "Realized and unrealized
gains on derivative contracts" whereas during the year ended December 31,
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
                                                   
                                                   December 31,  December 31,
                                                   2012           2011
ASSETS                                             (in millions)
Current Assets
Cash and cash equivalents                          $  —           $  —
Accounts receivable, net                           387.5          397.4
Fair value of derivative contracts                 188.7          273.7
Gas, oil and NGL inventories, at lower of          13.1           16.2
average cost or market
Prepaid expenses and other                         60.4          43.7       
Total Current Assets                               649.7         731.0      
Property, Plant and Equipment (successful
efforts method for gas and oil properties)
Proved properties                                  10,234.3       8,172.4
Unproved properties, net                           937.9          326.8
Midstream field services                           1,634.9        1,463.6
Marketing and other                                64.6           49.8
Materials and supplies                             61.9          87.6       
Total Property, Plant and Equipment                12,933.6      10,100.2   
Less Accumulated Depreciation, Depletion and
Amortization
Exploration and production                         4,258.1        3,339.2
Midstream field services                           357.9          297.5
Marketing and other                                18.1          14.6       
Total Accumulated Depreciation, Depletion and      4,634.1       3,651.3    
Amortization
Net Property, Plant and Equipment                  8,299.5       6,448.9    
Investment in unconsolidated affiliates            41.2           42.2
Goodwill                                           59.5           59.5
Fair value of derivative contracts                 4.1            123.5
Other noncurrent assets                            54.5          37.6       
TOTAL ASSETS                                       $  9,108.5    $  7,442.7 
LIABILITIES AND EQUITY
Current Liabilities
Checks outstanding in excess of cash balances      $  39.7        $  29.4
Accounts payable and accrued expenses              635.9          457.3
Production and property taxes                      41.8           40.0
Interest payable                                   36.9           24.4
Fair value of derivative contracts                 2.6            1.3
Deferred income taxes                              5.0           85.4       
Total Current Liabilities                          761.9         637.8      
Long-term debt                                     3,206.9        1,679.4
Deferred income taxes                              1,493.5        1,484.7
Asset retirement obligations                       191.4          163.9
Fair value of derivative contracts                 3.6            —
Other long-term liabilities                        137.5          124.8
Commitments and contingencies
EQUITY
Common stock - par value $0.01 per share; 500.0
million shares authorized; 178.5 million and       1.8            1.8
177.2 million shares issued, respectively
Treasury stock - 0.1 million and 0.4 million       (3.7       )   (13.1      )
shares, respectively
Additional paid-in capital                         462.1          431.4
Retained earnings                                  2,773.0        2,673.5
Accumulated other comprehensive income             32.8          207.9      
Total Common Shareholders' Equity                  3,266.0        3,301.5
Noncontrolling interest                            47.7          50.6       
Total Equity                                       3,313.7       3,352.1    
TOTAL LIABILITIES AND EQUITY                       $  9,108.5    $  7,442.7 
                                                   
                                                   
QEP RESOURCES, INC.
CONSOLIDATED CASH FLOWS
                                                   
                                                   Year Ended
                                                   December 31,
                                                   2012           2011
                                                   (in millions)
OPERATING ACTIVITIES
Net income                                         $  132.0       $  270.4
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization           904.9          765.4
Deferred income taxes                              32.1           156.8
Abandonment and impairment                         133.4          218.4
Share-based compensation                           25.6           22.0
Amortization of debt issuance costs and            5.3            4.1
discounts
Net gain from asset sales                          (1.2       )   (1.4       )
Income from unconsolidated affiliates              (6.8       )   (5.5       )
Distributions from unconsolidated affiliates and   7.9            8.1
dry exploratory well expense
Non-cash loss on early extinguishment of debt      —              0.7
Unrealized gain on derivative contracts            (63.2      )   (117.7     )
Changes in operating assets and liabilities        126.0         (28.7      )
Net Cash Provided by Operating Activities of       1,296.0       1,292.6    
Continuing Operations
INVESTING ACTIVITIES
Property acquisitions                              (1,401.0   )   (48.0      )
Property, plant and equipment, including dry       (1,398.7   )   (1,383.1   )
hole exploratory well expense
Proceeds from disposition of assets                5.2           8.2        
Net Cash Used in Investing Activities of           (2,794.5   )   (1,422.9   )
Continuing Operations
FINANCING ACTIVITIES
Checks outstanding in excess of cash balances      10.3           9.9
Long-term debt issued                              1,450.0        —
Long-term debt issuance costs paid                 (17.8      )   (10.6      )
Long-term debt repaid                              (6.7       )   (58.5      )
Proceeds from credit facility                      1,234.5        591.5
Repayments of credit facility                      (1,151.0   )   (385.0     )
Other capital contributions                        (2.2       )   0.7
Dividends paid                                     (14.2      )   (14.1      )
Excess tax benefit on share-based compensation     2.2            1.6
Distribution from Questar                          —              0.2
Distribution to noncontrolling interest            (6.6       )   (5.4       )
Net Cash Provided by Financing Activities of       1,498.5       130.3      
Continuing Operations
Change in cash and cash equivalents                —              —
Beginning cash and cash equivalents                —             —          
Ending cash and cash equivalents                   $  —          $  —       
                                                                             

                   
QEP RESOURCES, INC.
OPERATIONS BY LINE OF BUSINESS
                     
QEP Energy - Production by Region

                     Three Months Ended December     Year Ended December 31,
                     31,
                     (in Bcfe)
                     2012       2011       Change   2012       2011       Change
Northern Region
Pinedale             25.8        23.8        8   %    99.7        79.4        26  %
Williston            10.1        2.7         274 %    20.3        7.1         186 %
Basin^(1)
Uinta Basin^(2)      7.0         4.6         52  %    23.9        20.8        15  %
Legacy               3.3        3.5        (6  )%   13.7       14.2       (4  )%
Total Northern       46.2       34.6       34  %    157.6      121.5      30  %
Region
Southern Region
Haynesville/Cotton   25.5        26.6        (4  )%   112.3       107.5       4   %
Valley
Midcontinent         12.2       12.7       (4  )%   49.3       46.2       7   %
Total Southern       37.7       39.3       (4  )%   161.6      153.7      5   %
Region
Total production     83.9       73.9       14  %    319.2      275.2      16  %
                                                                              
^(1) Results for the three and twelve months ended December 31, 2012, include
increased production due to the North Dakota Acquisition.

^(2) 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 December      Year Ended December 31,
                     31,
                     2012        2011        Change   2012        2011        Change
QEP Energy
Production Volumes
Natural gas (Bcf)    61.3        60.5        1   %    249.3       236.4       5   %
Oil (Mbbl)           2,333.8     1,182.1     97  %    6,306.9     3,741.3     69  %
NGL (Mbbl)           1,442.8    1,040.6    39  %    5,349.0    2,715.6    97  %
Total production     83.9        73.9        14  %    319.2       275.2       16  %
(Bcfe)
Average daily        911.9       803.3       14  %    872.1       753.9       16  %
production (MMcfe)
                     
                     
                     
QEP Energy - Prices^(1)

                     Three Months Ended December      Year Ended December 31,
                     31,
                     2012^(2)    2011^(3)    Change   2012        2011        Change
Natural gas (per
Mcf)
Average              $ 3.22      $ 3.66               $ 2.68      $ 3.95
field-level price
Commodity            0.94       1.08                1.37       0.79    
derivative impact
Net realized price   $ 4.16     $ 4.74     (12 )%   $ 4.05     $ 4.74     (15 )%
Oil (per bbl)
Average              84.38       87.01                84.45       86.20
field-level price
Commodity            5.23       0.55                2.28       0.43    
derivative impact
Net realized price   $ 89.61    $ 87.56    2   %    $ 86.73    $ 86.63    —
NGL (per bbl)
Average              34.55       56.34                34.43       47.76
field-level price
Commodity            2.56       —                   1.90       —       
derivative impact
Net realized price   $ 37.11    $ 56.34    (34 )%   $ 36.33    $ 47.76    (24 )%
Average net
equivalent price
(per Mcfe)
Average              5.29        5.18                 4.34        5.04
field-level price
Commodity            0.88       0.90                1.14       0.68    
derivative impact
Net realized price   $ 6.17     $ 6.08     1   %    $ 5.48     $ 5.72     (4  )%
                                                                              
^(1) Prior year is recast to reflect exclusion of natural gas, oil and NGL transport
& other handling costs.

^(2) The commodity derivative impact is reported below operating (loss) income in
"Realized and unrealized gains on derivative contracts" beginning January 1, 2012,
in the Condensed Consolidated Statement of Operations.

^(3) The impact of settled commodity derivatives that qualified for hedge accounting
was reported in "Revenues" in the Condensed Consolidated 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 December      Year Ended December 31,
                     31,
                     2012        2011        Change   2012        2011        Change
                     (per Mcfe)
Depreciation,
depletion and        $ 2.87      $ 2.48      16  %    $ 2.63      $ 2.57      2   %
amortization
Lease operating      0.60        0.57        5   %    0.55        0.54        2   %
expense
Natural gas, oil
and NGL transport    0.72        0.75        (4  )%   0.71        0.68        4   %
& other handling
costs
General and
administrative       1.71        0.39        338 %    0.74        0.36        106 %
expense ^ (1)
Allocated interest   0.55        0.29        90  %    0.37        0.30        23  %
expense
Production taxes     0.40       0.34       18  %    0.30       0.36       (17 )%
Total Operating      $ 6.85     $ 4.82     42  %    $ 5.30     $ 4.81     10  %
Expenses
                                                                                  
^(1) General and administrative expense for the three months and year ended December
31, 2012, includes a $104.2 million and $115 million, respectively, accrual for a
litigation loss contingency. Excluding this charge, general and administrative
expense for 2012 would have been $0.47/Mcfe and $0.38/Mcfe for fourth quarter and
full year, respectively.



QEP Field Services

                     Three Months Ended December      Year Ended December 31,
                     31,
                     2012        2011        Change   2012        2011        Change
QEP Field Services
Gathering
Operating
Statistics
Natural gas
gathering volumes    119.6       128.4       (7  )%   506.5       495.4       2   %
(millions of
MMBtu)
Gathering revenue    $ 0.35      $ 0.32      9   %    $ 0.34      $ 0.33      3   %
(per MMBtu)
                                                                              
QEP Field Services
Gathering Margin
(in millions)
Gathering            $ 41.3      $ 41.1      —        $ 172.9     $ 161.1     7   %
Other Gathering      8.0         9.3         (14 )%   36.6        68.5        (47 )%
Gathering            (10.5   )   (9.3    )   13  %    (37.4   )   (44.6   )   (16 )%
(expense)
Gathering margin     $ 38.8     $ 41.1     (6  )%   $ 172.1    $ 185.0    (7  )%
                                                                              
QEP Field Services
Processing Margin
(in millions)
NGL sales^(1)        $ 25.2      $ 60.1      (58 )%   $ 137.9     $ 180.0     (23 )%
Realized gains
from commodity
derivative           2.1         —           —        8.4         —           —
contract
settlements
Processing
(fee-based)          17.8        16.1        11  %    69.6        53.7        30  %
revenues
Other processing     0.5         0.5         —        8.9         2.2         305 %
revenues
Processing           (4.0    )   (3.3    )   21  %    (16.1   )   (12.2   )   32  %
(expense)
Processing plant
fuel and shrink      (6.7    )   (15.1   )   (56 )%   (33.3   )   (49.2   )   (32 )%
(expense)
Natural gas, oil
and NGL transport    (5.9    )   (4.7    )   26  %    (33.6   )   (9.3    )   261 %
& other handling
costs
Processing margin    $ 29.0     $ 53.6     (46 )%   $ 141.8    $ 165.2    (14 )%
Keep-whole
processing           $ 14.7      $ 40.3      (64 )%   $ 79.4      $ 121.5     (35 )%
margin^(2)
Fee-based            $ 14.3      $ 13.3      8   %    $ 62.4      $ 43.7      43  %
processing margin
                                                                              
QEP Field Services
Processing
Operating
Statistics
Natural gas
processing volumes
NGL sales (Mbbl)     576.6       1,039.0     (45 )%   3,470.3     3,376.4     3   %
Average net
realized NGL sales   $ 47.53     $ 57.91     (18 )%   $ 42.18     $ 53.33     (21 )%
price (per
Bbl)^(3)
Total fee-based
processing volumes   62.1        59.6        4   %    251.3       240.7       4   %
(in millions of
MMBtu)
Average fee-based
processing revenue   $ 0.28      $ 0.27      4   %    $ 0.28      $ 0.22      27  %
(per MMBtu)
                                                                              
^(1) NGL sales for the three and twelve months ended December 31, 2011, have been
recast to reflect QEP's revised reporting of its transportation and handling costs.
In addition, revenues for the three and twelve months ended December 31, 2011,
reflect the impact of QEP's settled derivative contracts which during the three and
twelve months ended December 31, 2012, are reflected below operating (loss) income.

^(2) Keep-whole processing margin is calculated as NGL sales less processing plant
fuel and shrink, natural gas, oil and NGL transport, fractionation expense and other
handling costs.

^(3) Average net realized NGL sales price per barrel is calculated as NGL sales
including realized gains from commodity derivative contracts settlements divided by
NGL sales volumes.


QEP RESOURCES, INC.
NON-GAAP MEASURES


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, loss on early extinguishment of debt and accrued
litigation loss contingency. 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.

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

                                                  
                 Three Months Ended                  Year Ended
                 December 31,                        December 31,
                 2012       2011       Change      2012         2011         Change
QEP Resources    (in millions)
Net (loss)
income
attributable     $ (23.1 )   $ (0.3  )   $ (22.8 )   $ 128.3       $ 267.2       $ (138.9 )
to QEP
Resources
Net income
attributable
to               1.0        1.0        —          3.7          3.2          0.5      
noncontrolling
interest
Net (loss)       (22.1   )   0.7         (22.8   )   132.0         270.4         (138.4   )
income
Unrealized
gains on         (30.4   )   (31.0   )   0.6         (63.2     )   (117.7    )   54.5
derivative
contracts
Net gain from    0.3         —           0.3         (1.2      )   (1.4      )   0.2
asset sales
Interest and     (4.2    )   (4.6    )   0.4         (6.6      )   (4.1      )   (2.5     )
other income
Income tax
(benefit)        (20.0   )   (1.6    )   (18.4   )   66.5          154.4         (87.9    )
provision
Interest         40.0        23.0        17.0        122.9         90.0          32.9
expense
Accrued
litigation       104.2       —           104.2       115.0         —             115.0
loss
contingency
Loss on early
extinguishment   —           —           —           0.6           0.7           (0.1     )
of debt
Depreciation,
depletion and    257.5       199.0       58.5        904.9         765.4         139.5
amortization
Abandonment      61.6        202.0       (140.4  )   133.4         218.4         (85.0    )
and impairment
Exploration      4.9        3.0        1.9        11.2         10.5         0.7      
expenses
Adjusted         $ 391.8    $ 390.5    $ 1.3      $ 1,415.5    $ 1,386.6    $ 28.9   
EBITDA
                                                                                 
QEP Energy
Net (loss)
income           $ (52.3 )   $ (43.5 )   $ (8.8  )   $ (0.7    )   $ 104.7       $ (105.4 )
attributable
to QEP Energy
Unrealized
gains on         (30.5   )   (31.0   )   0.5         (68.4     )   (117.7    )   49.3
derivative
contracts
Net gain from    0.3         —           0.3         (1.2      )   (1.4      )   0.2
asset sales
Interest and     (4.0    )   (4.5    )   0.5         (6.2      )   (4.0      )   (2.2     )
other income
Income tax
(benefit)        (36.7   )   (29.8   )   (6.9    )   (4.3      )   57.9          (62.2    )
provision
Interest         45.7        21.1        24.6        116.8         81.9          34.9
expense
Accrued
litigation       104.2       —           104.2       115.0         —             115.0
loss
contingency
Depreciation,
depletion and    240.3       183.2       57.1        838.0         707.2         130.8
amortization
Abandonment      61.6        202.0       (140.4  )   133.4         218.4         (85.0    )
and impairment
Exploration      4.9        3.0        1.9        11.2         10.5         0.7      
expenses
Adjusted         $ 333.5    $ 300.5    $ 33.0     $ 1,133.6    $ 1,057.5    $ 76.1   
EBITDA
                                                                                 
                                                                                 
                                                                                 
                 Three Months Ended                  Year Ended
                 December 31,                        December 31,
                 2012        2011        Change      2012          2011          Change
QEP Field        (in millions)
Services
Net income
attributable     $ 21.6      $ 40.3      $ (18.7 )   $ 129.0       $ 154.5       $ (25.5  )
to QEP Field
Services
Net income
attributable
to               1.0        1.0        —          3.7          3.2          0.5      
noncontrolling
interest
Net income       22.6        41.3        (18.7   )   132.7         157.7         (25.0    )
Unrealized
losses on        2.0         —           2.0         —             —             —
derivative
contracts
Interest and     (0.1    )   (0.1    )   —           (0.2      )   (0.1      )   (0.1     )
other income
Income tax       12.6        27.8        (15.2   )   71.8          93.4          (21.6    )
provision
Interest         4.2         3.2         1.0         13.6          13.6          —
expense
Depreciation,
depletion and    16.0       15.0       1.0        63.2         55.7         7.5      
amortization
Adjusted         $ 57.3     $ 87.2     $ (29.9 )   $ 281.1      $ 320.3      $ (39.2  )
EBITDA
                                                                                 
QEP Marketing
& Other
Net income
attributable
to QEP           $ 7.6       $ 2.9       $ 4.7       $ —           $ 8.0         $ (8.0   )
Marketing and
other
Unrealized
(gains) losses   (1.9    )   —           (1.9    )   5.2           —             5.2
on derivative
contracts
Other income     (0.1    )   —           (0.1    )   (0.2      )   —             (0.2     )
Income tax
provision        4.1         0.4         3.7         (1.0      )   3.1           (4.1     )
(benefit)
Interest         (9.9    )   (1.3    )   (8.6    )   (7.5      )   (5.5      )   (2.0     )
expense
Loss on early
extinguishment   —           —           —           0.6           0.7           (0.1     )
of debt
Depreciation,
depletion and    1.2        0.8        0.4        3.7          2.5          1.2      
amortization
Adjusted         $ 1.0      $ 2.8      $ (1.8  )   $ 0.8        $ 8.8        $ (8.0   )
EBITDA
                                                                                          

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, unrealized gains and losses on derivative contracts,
accrued litigation loss contingency, costs from early extinguishment of debt
and non-cash price-related asset impairments. 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              Year Ended
                       December 31,                   December 31,
                       2012           2011            2012         2011
                       (in millions, except per earnings per share)
Net (loss) income
attributable to QEP    $  (23.1  )     $  (0.3   )     $  128.3      $ 267.2
Resources
Adjustments to net
income
Net gain from asset    0.3             —               (1.2      )   (1.4    )
sales
Income taxes on net    (0.1      )     —               0.4           0.5
gain on asset sales
Unrealized gains on
derivative             (30.4     )     (31.0     )     (63.2     )   (117.7  )
contracts
Income taxes on
unrealized gains on    11.1            11.2            23.4          42.5
derivative
contracts
Accrued litigation     104.2           —               115.0         —
loss contingency
Income taxes on
accrued litigation     (38.8     )     —               (42.8     )   —
loss contingency
Loss on early
extinguishment of      —               —               0.6           0.7
debt
Income taxes on
loss from early        —               —               (0.2      )   (0.3    )
extinguishment of
debt
Non-cash
price-related          58.3            195.2           107.6         195.2
impairment charge
Income taxes on
non-cash               (21.7     )     (70.5     )     (40.0     )   (70.5   )
price-related
impairment charge
Total after-tax
adjustments to net     82.9           104.9          99.6         49.0    
income
Adjusted net income
attributable to QEP    $  59.8        $  104.6       $  227.9     $ 316.2 
Resources
                                                                     
Earnings per Common
Share attributable
to QEP
Diluted earnings       $  (0.13  )     $  —            $  0.72       $ 1.50
per share
Diluted after-tax
adjustments to net     0.46           0.58           0.56         0.27    
income per share
Diluted Adjusted
Net Income per         $  0.33        $  0.58        $  1.28      $ 1.77  
share
                                                                     
Weighted-average
common shares
outstanding
Diluted^(1)            178.9           178.2           178.7         178.4
                                                                     
Weighted-average
common shares
outstanding diluted
Non-GAAP
reconciliation^(1)
Weighted-average
common shares
outstanding used in    178.3
GAAP diluted
calculation
Potential number of
shares issuable
upon exercise of
in-the-money stock     0.6       
options under the
long-term stock
incentive plan
Weighted-average
common shares
outstanding used in    178.9     
Non- GAAP diluted
calculation
                                                                     
^(1) The three months ended December 31, 2012, diluted common shares
outstanding for purposes of calculating Diluted Adjusted Net Income per share
include potential increases in shares that could result from the exercise of
in-the-money stock options. These potential shares are excluded for the three
months ended December 31, 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 2013 derivative positions as of February 12,
2013:


QEP Energy Commodity Derivative Positions

                                              Total             Average
                                                                    price
Year                Type of        Index         Volumes            per unit
                    Contract
                                                 (in millions)
Natural gas                                      (MMBtu)
sales
2013             Swap           NYMEX         51.10              $  3.79
2013             Swap           IFNPCR        65.70              $  5.66
                                   ^(1)
2014             Swap           NYMEX         18.25              $  4.21
2014             Swap           IFNPCR        7.30               $  4.00
Oil sales                                        (Bbls)
2013             Swap           NYMEX WTI     5.72               $  98.35
2013             Swap           Brent         0.33               $  107.80
2014             Swap           NYMEX WTI     4.75               $  92.99

^(1) IFNPCR - Inside FERC monthly settlement index for the Northwest Pipeline
Corp. Rocky Mountains.



QEP Marketing Commodity Derivative Positions

                                                 Total              Average
                                                                    price
Year                Type of        Index         Volumes            per MMBtu
                    Contract
                                                 (in millions)
Natural gas                                      (MMBtu)
sales
2013             Swap           IFNPCR        4.03               $  3.78
Natural gas                                      (MMBtu)
purchases
2013             Swap           IFNPCR        0.16               $  2.88
2014             Swap           IFNPCR        0.04               $  3.02
                                                                       

Contact:

QEP Resources, Inc.
Investors:
Greg Bensen, 303-405-6665
Director, Investor Relations
 
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