Derivative Contracts (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Volumes and Average Prices

QEP Energy Derivative Contracts

The following table sets forth QEP Energy's quantities and average prices for its commodity derivative contracts as of December 31, 2012:

				Swaps
Year	Type of Contract	Index	Total Volumes	Average price per unit
			(in millions)
Natural gas sales			(MMBtu)
2013	Swap	NYMEX	51.1	$	3.79
2013	Swap	IFNPCR	65.7	$	5.66
2014	Swap	NYMEX	18.3	$	4.21
Oil sales			(Bbls)
2013	Swap	NYMEX WTI	5.1	$	98.48
2014	Swap	NYMEX WTI	1.8	92.72

QEP Marketing Derivative Contracts

QEP Marketing enters into commodity derivative transactions to lock in a margin on natural gas volumes placed into storage and for marketing transactions in which QEP Marketing is required to sell gas volumes at a fixed price. The following table sets forth QEP Marketing's volumes and swap prices for its commodity derivative contracts as of December 31, 2012:

Year	Type of Contract	Index	Total Volumes	Average Swap price per MMBtu
			(in millions)
Natural gas sales			(MMBtu)
2013	Swap	IFNPCR	4.0	$	3.78
Natural gas purchases			(MMBtu)
2013	Swap	IFNPCR	0.2	$	2.88
2014	Swap	IFNPCR	0.1	$	3.02

QEP Resources Derivative Contracts

In the second quarter of 2012, QEP Resources entered into interest rate swap agreements to effectively lock in a fixed interest rate on debt outstanding under its Term Loan. The following table sets forth QEP Resources' notional amounts and interest rates for its interest rate swaps outstanding as of December 31, 2012:

Notional amount	Type of Contract	Maturity	Fixed Rate Paid	Variable Rate Received
(in millions)
$300.0	Swap	March 2017	1.07%	One month LIBOR

Fair values of Derivatives by Balance Sheet Location

The following table presents the balance sheet location of QEP's outstanding derivative contracts on a gross contract basis as opposed to the net contract basis presentation in the Consolidated Balance Sheets and the related fair values at the balance sheet dates:

		Gross asset derivative instruments fair value				Gross liability derivative instruments fair value
		December 31,
	Balance Sheet line item	2012		2011		2012		2011
		(in millions)				(in millions)
Current:
Commodity	Fair value of derivative contracts	$	189.7	$	284.1	$	1.0	$	11.7
Interest rate swaps	Fair value of derivative contracts	—		—		2.6		—
Long-term:
Commodity	Fair value of derivative contracts	4.2		123.5		0.1		—
Interest rate swaps	Fair value of derivative contracts	—		—		3.6		—
Total derivative instruments		$	193.9	$	407.6	$	7.3	$	11.7

Effects of Derivative Transactions

The effects and location of the change in fair value and settlement of QEP's derivative contracts on the Consolidated Statements of Operations are summarized in the following tables:

Derivative instruments not designated as cash flow hedges (1)	Year Ended December 31,
	2012			2011			2010
Realized gain (loss) on commodity derivative contracts
QEP Energy
Natural gas derivative contracts	$	341.9		$	(117.7	)	$	(121.7	)
Oil derivative contracts	14.4			—			—
NGL derivative contracts	10.2			—			—
QEP Field Services
NGL derivative contracts	8.4			—			—
QEP Marketing
Natural gas derivative contracts	5.1			—			—
Total realized gain (loss) on commodity derivative contracts	380.0			(117.7		)	(121.7		)
Unrealized gain (loss) on commodity derivative contracts
QEP Energy
Natural gas derivative contracts	37.8			117.7			121.7
Oil derivative contracts	29.0			—			—
NGL derivative contracts	1.6			—			—
QEP Field Services
NGL derivative contracts	—			—			—
QEP Marketing
Natural gas derivative contracts	0.9			—			—
Total unrealized gain on commodity derivative contracts	69.3			117.7			121.7
Total realized and unrealized gain on commodity derivative contracts	$	449.3		$	—		$	—
Realized gain (loss) on interest rate swaps
Realized loss on interest rate swaps	$	(1.3	)	$	—		$	—
Unrealized gain (loss) on interest rate swaps
Unrealized loss on interest rate swaps	(6.1		)	—			—
Total realized and unrealized loss on interest rate swaps	$	(7.4	)	$	—		$	—
Total net realized gain on derivative contracts	$	378.7		$	(117.7	)	$	(121.7	)
Total net unrealized gain on derivative contracts	$	63.2		$	117.7		$	121.7
Grand Total	$	441.9		$	—		$	—

____________________________

⁽¹⁾ Gains and losses on derivatives not designated as cash flow hedges, are included in earnings in "Realized and unrealized gains on derivative contracts" on the Consolidated Statement of Operations.

The following table presents the change in the fair value and settlement of QEP's derivative contracts that were designated as cash flow hedges in 2011 and 2010:

Derivative instruments classified as cash flow hedges	Location of gain (loss) recognized in earnings	December 31,
		2012		2011			2010
Commodity derivatives
Gain on derivative instruments for the effective portion of hedge recognized in AOCI	Accumulated other comprehensive income	$	—	$	350.8		$	565.8
Gain reclassified from AOCI into income for effective portion of hedge	Natural gas sales	—		305.5			353.8
Gain reclassified from AOCI into income for effective portion of hedge	Oil sales	—		1.6			(8.7		)
Gain reclassified from AOCI into income for effective portion of hedge	NGL sales	—		(0.2		)	—
Gain reclassified from AOCI into income for effective portion of hedge	Marketing purchases	—		4.3			3.1
Gain recognized in income for the ineffective portion of hedges	Interest and other income	—		0.1			0.2