Operations by Line of Business

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Operations by Line of Business

Operations by Line of Business

QEP's lines of business include natural gas and oil exploration and production (QEP Energy), midstream field services (QEP Field Services) and marketing (QEP Marketing and other). The lines of business are managed separately and therefore the financial information is presented separately due to the distinct differences in the nature of operations of each line of business, among other factors.

The following table is a summary of operating results for the year ended December 31, 2012, by line of business:

	QEP Energy			QEP Field Services			QEP Marketing  & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues (1)
From unaffiliated customers	$	1,615.4		$	320.2		$	414.2		$	—		$	2,349.8
From affiliated customers	—			119.0			605.7			(724.7		)	—
Total Revenues	1,615.4			439.2			1,019.9			(724.7		)	2,349.8
Operating expenses
Purchased gas, oil and NGL expense	224.7			12.1			1,021.1			(602.3		)	655.6
Lease operating expense	175.8			—			—			(3.5		)	172.3
Natural gas, oil and NGL transportation and other handling costs	228.1			33.6			—			(112.8		)	148.9
Gathering, processing and other	—			86.8			1.2			—			88.0
General and administrative	237.6			34.7			0.4			(6.1		)	266.6
Production and property taxes	97.2			6.0			0.2			—			103.4
Depreciation, depletion and amortization	838.0			63.2			3.7			—			904.9
Abandonment, impairment and exploration expenses	144.6			—			—			—			144.6
Total operating expenses	1,946.0			236.4			1,026.6			(724.7		)	2,484.3
Net gain from asset sales	1.2			—			—			—			1.2
Operating (loss) income (1)	(329.4		)	202.8			(6.7		)	—			(133.3		)
Realized and unrealized gains (losses) on derivative contracts	434.9			8.4			(1.4		)	—			441.9
Interest and other income	6.2			0.2			132.1			(131.9		)	6.6
Income from unconsolidated affiliates	0.1			6.7			—			—			6.8
Loss on early extinguishment of debt	—			—			(0.6		)	—			(0.6		)
Interest expense	(116.8		)	(13.6		)	(124.4		)	131.9			(122.9		)
Income (loss) before income taxes	(5.0		)	204.5			(1.0		)	—			198.5
Income tax (provision) benefit	4.3			(71.8		)	1.0			—			(66.5		)
Net income (loss)	(0.7		)	132.7			—			—			132.0
Net income attributable to noncontrolling interest	—			(3.7		)	—			—			(3.7		)
Net income (loss) attributable to QEP (2)	$	(0.7	)	$	129.0		$	—		$	—		$	128.3
Identifiable total assets	$	7,436.5		$	1,399.7		$	272.3		$	—		$	9,108.5
Investment in unconsolidated affiliates	—			41.2			—			—			41.2
Cash capital expenditures	2,621.1			164.0			14.6			—			2,799.7
Accrued capital expenditures	2,702.4			171.2			14.6			—			2,888.2
Goodwill	59.5			—			—			—			59.5

____________________________

⁽¹⁾  The impact of QEP's settled derivative contracts, for the year endedDecember 31, 2012, are reflected below operating (loss) income.

⁽²⁾  Net (loss) income attributable to QEP for the year endedDecember 31, 2012, includes the impact of unrealized gains and losses from changes in the fair value of the commodity derivative contracts.

The following table is a summary of operating results for the year ended December 31, 2011, by line of business:

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues (1)
From unaffiliated customers	$	2,213.2		$	369.3		$	576.7		$	—		$	3,159.2
From affiliated customers	—			96.2			580.2			(676.4		)	—
Total Revenues	2,213.2			465.5			1,156.9			(676.4		)	3,159.2
Operating expenses
Purchased gas, oil and NGL expense	506.4			—			1,144.5			(573.8		)	1,077.1
Lease operating expense	148.2			—			—			(3.0		)	145.2
Natural gas, oil and NGL transportation and other handling costs	186.0			9.3			—			(93.1		)	102.2
Gathering, processing and other	—			106.0			1.3			—			107.3
General and administrative	98.4			29.2			2.1			(6.5		)	123.2
Production and property taxes	99.1			6.1			0.2			—			105.4
Depreciation, depletion and amortization	707.2			55.7			2.5			—			765.4
Abandonment, impairment and exploration expenses	228.9			—			—			—			228.9
Total operating expenses	1,974.2			206.3			1,150.6			(676.4		)	2,654.7
Net gain (loss) from asset sales	1.4			—			—			—			1.4
Operating income (2)	240.4			259.2			6.3			—			505.9
Interest and other income	4.0			0.1			98.7			(98.7		)	4.1
Income from unconsolidated affiliates	0.1			5.4			—			—			5.5
Loss on extinguishment of debt	—			—			(0.7		)	—			(0.7		)
Interest expense	(81.9		)	(13.6		)	(93.2		)	98.7			(90.0		)
Income before income taxes	162.6			251.1			11.1			—			424.8
Income taxes	(57.9		)	(93.4		)	(3.1		)	—			(154.4		)
Net income	104.7			157.7			8.0			—			270.4
Net income attributable to noncontrolling interest	—			(3.2		)	—			—			(3.2		)
Net income attributable to QEP (3)	$	104.7		$	154.5		$	8.0		$	—		$	267.2
Identifiable assets	$	5,815.7		$	1,312.7		$	314.3		$	—		$	7,442.7
Investment in unconsolidated affiliates	—			42.2			—			—			42.2
Cash capital expenditures	1,295.5			130.1			5.5			—			1,431.1
Accrued capital expenditures	1,338.7			101.6			5.5			—			1,445.8
Goodwill	59.5			—			—			—			59.5

____________________________

⁽¹⁾  Revenues for the year endedDecember 31, 2011, reflect the impact of QEP's settled derivative contracts. See Note 6 - Derivative Contracts, for additional information on derivative contract settlements in the year endedDecember 31, 2011.

⁽²⁾  Under hedge accounting, realized gains and losses from realized commodity derivative contract settlements were included in revenues and operating income during the year endedDecember 31, 2011.

⁽³⁾  Under hedge accounting, unrealized gains and losses from changes in the fair value were deferred in AOCI during the year endedDecember 31, 2011.

The following table is a summary of operating results for the year ended December 31, 2010, by line of business:

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues (1)
From unaffiliated customers	$	1,456.3		$	245.5		$	598.8		$	—		$	2,300.6
From affiliated customers	—			73.7			499.7			(573.4		)	—
Total Revenues	1,456.3			319.2			1,098.5			(573.4		)	2,300.6
Operating expenses
Purchased gas, oil and NGL expense	—			—			1,082.8			(493.5		)	589.3
Lease operating expense	127.3			—			—			(2.3		)	125.0
Natural gas, oil and NGL transportation and other handling costs	125.5			—			—			(71.3		)	54.2
Gathering, processing and other	—			82.1			1.1			—			83.2
General and administrative	78.0			31.6			3.9			(6.3		)	107.2
Separation costs	—			—			13.5			—			13.5
Production and property taxes	77.8			4.4			0.3			—			82.5
Depreciation, depletion and amortization	592.5			48.9			2.0			—			643.4
Abandonment, impairment and exploration expenses	69.1			—			—			—			69.1
Total operating expenses	1,070.2			167.0			1,103.6			(573.4		)	1,767.4
Net gain (loss) from asset sales	13.7			(1.6		)	—			—			12.1
Operating income (2)	399.8			150.6			(5.1		)	—			545.3
Interest and other income	2.1			0.1			87.2			(87.1		)	2.3
Income from unconsolidated affiliates	0.2			2.8			—			—			3.0
Loss on extinguishment of debt	—			—			(13.3		)	—			(13.3		)
Interest expense	(78.5		)	(7.6		)	(85.4		)	87.1			(84.4		)
Income before income taxes	323.6			145.9			(16.6		)	—			452.9
Income taxes	(119.7		)	(51.9		)	4.6			—			(167.0		)
Net income from continuing operations	203.9			94.0			(12.0		)	—			285.9
Discontinued operations, net of income tax	—			—			43.2			—			43.2
Net Income	203.9			94.0			31.2			—			329.1
Net income attributable to noncontrolling interest	—			(2.9		)	—			—			(2.9		)
Net income attributable to QEP (3)	$	203.9		$	91.1		$	31.2		$	—		$	326.2
Identifiable assets	$	5,391.9		$	1,197.5		$	195.9		$	—		$	6,785.3
Investment in unconsolidated affiliates	—			44.5			—			—			44.5
Cash capital expenditures	1,205.0			262.1			1.9			—			1,469.0
Accrued capital expenditures	1,215.8			268.2			1.9			—			1,485.9
Goodwill	59.6			—			—			—			59.6

____________________________

(1) Revenues for the year endedDecember 31, 2010, reflect the impact of QEP's settled derivative contracts. See Note 6 - Derivative Contracts, for detailed information on derivative contract settlements in the year endedDecember 31, 2010.

(2) Under hedge accounting, realized gains and losses from realized commodity derivative contract settlements were included in revenues and operating income during the year endedDecember 31, 2010.

(3) Under hedge accounting, unrealized gains and losses from changes in the fair value were deferred in AOCI during the year endedDecember 31, 2010.