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 and corporate (QEP Marketing & Resources). 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 three months ended June 30, 2013, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	528.5		$	72.3		$	150.2		$	—		$	751.0
From affiliated customers	—			30.6			221.7			(252.3		)	—
Total Revenues	528.5			102.9			371.9			(252.3		)	751.0
Operating expenses
Purchased gas, oil and NGL expense	54.9			3.5			369.9			(221.3		)	207.0
Lease operating expense	45.7			—			—			(2.2		)	43.5
Natural gas, oil and NGL transportation and other handling costs	59.5			5.4			—			(27.6		)	37.3
Gathering, processing and other	—			23.0			0.5			—			23.5
General and administrative	30.0			10.9			1.2			(1.2		)	40.9
Production and property taxes	37.6			1.7			—			—			39.3
Depreciation, depletion and amortization	238.0			11.7			0.1			—			249.8
Other operating expenses	2.8			—			—			—			2.8
Total operating expenses	468.5			56.2			371.7			(252.3		)	644.1
Net gain (loss) from asset sales	100.5			(0.1		)	—			—			100.4
Operating income (loss)	160.5			46.6			0.2			—			207.3
Realized and unrealized gains on derivative contracts	109.4			—			4.6			—			114.0
Interest and other income	3.2			—			54.7			(54.8		)	3.1
Income from unconsolidated affiliates	—			1.6			—			—			1.6
Interest expense	(48.9		)	(5.3		)	(42.0		)	54.8			(41.4		)
Income before income taxes	224.2			42.9			17.5			—			284.6
Income tax provision	(82.1		)	(15.1		)	(7.6		)	—			(104.8		)
Net income	142.1			27.8			9.9			—			179.8
Net income attributable to noncontrolling interest	—			(1.4		)	—			—			(1.4		)
Net income attributable to QEP	$	142.1		$	26.4		$	9.9		$	—		$	178.4

The following table is a summary of operating results for the three months ended June 30, 2012, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	335.5		$	83.4		$	80.4		$	—		$	499.3
From affiliated customers	—			30.2			118.2			(148.4		)	—
Total Revenues	335.5			113.6			198.6			(148.4		)	499.3
Operating expenses
Purchased gas, oil and NGL expense	40.6			4.1			197.4			(117.2		)	124.9
Lease operating expense	41.4			—			—			(0.9		)	40.5
Natural gas, oil and NGL transportation and other handling costs	57.2			12.0			—			(28.5		)	40.7
Gathering, processing and other	—			20.4			0.5			(0.3		)	20.6
General and administrative	28.7			8.8			0.8			(1.5		)	36.8
Production and property taxes	18.2			1.2			—			—			19.4
Depreciation, depletion and amortization	198.0			16.3			0.1			—			214.4
Other operating expenses	57.5			—			—			—			57.5
Total operating expenses	441.6			62.8			198.8			(148.4		)	554.8
Operating (loss) income	(106.1		)	50.8			(0.2		)	—			(55.5		)
Realized and unrealized gains (losses) on derivative contracts	81.8			4.8			(4.3		)	—			82.3
Interest and other income	0.7			0.1			26.8			(26.7		)	0.9
Income from unconsolidated affiliates	0.1			1.3			—			—			1.4
Loss on early extinguishment of debt	—			—			(0.6		)	—			(0.6		)
Interest expense	(23.4		)	(3.6		)	(27.9		)	26.7			(28.2		)
(Loss) income before income taxes	(46.9		)	53.4			(6.2		)	—			0.3
Income tax benefit (provision)	16.6			(19.2		)	2.5			—			(0.1		)
Net (loss) income	(30.3		)	34.2			(3.7		)	—			0.2
Net income attributable to noncontrolling interest	—			(0.9		)	—			—			(0.9		)
Net (loss) income attributable to QEP	$	(30.3	)	$	33.3		$	(3.7	)	$	—		$	(0.7	)

The following table is a summary of operating results for the six months ended June 30, 2013, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,036.7		$	136.7		$	274.1		$	—		$	1,447.5
From affiliated customers	—			58.2			438.9			(497.1		)	—
Total Revenues	1,036.7			194.9			713.0			(497.1		)	1,447.5
Operating expenses
Purchased gas, oil and NGL expense	120.6			8.6			712.4			(437.8		)	403.8
Lease operating expense	86.7			—			—			(4.3		)	82.4
Natural gas, oil and NGL transportation and other handling costs	115.7			8.2			—			(52.6		)	71.3
Gathering, processing and other	—			43.3			0.8			—			44.1
General and administrative	66.7			20.4			2.2			(2.4		)	86.9
Production and property taxes	72.3			2.8			0.1			—			75.2
Depreciation, depletion and amortization	476.1			27.5			0.4			—			504.0
Other operating expenses	7.9			—			—			—			7.9
Total operating expenses	946.0			110.8			715.9			(497.1		)	1,275.6
Net gain (loss) from asset sales	100.6			(0.4		)	—			—			100.2
Operating income (loss)	191.3			83.7			(2.9		)	—			272.1
Realized and unrealized gains on derivative contracts	75.2			—			4.2			—			79.4
Interest and other income	4.9			0.3			105.9			(106.0		)	5.1
Income from unconsolidated affiliates	—			2.9			—			—			2.9
Interest expense	(94.2		)	(9.3		)	(83.3		)	106.0			(80.8		)
Income before income taxes	177.2			77.6			23.9			—			278.7
Income tax provision	(64.9		)	(27.6		)	(10.1		)	—			(102.6		)
Net income	112.3			50.0			13.8			—			176.1
Net income attributable to noncontrolling interest	—			(2.0		)	—			—			(2.0		)
Net income attributable to QEP	$	112.3		$	48.0		$	13.8		$	—		$	174.1

The following table is a summary of operating results for the six months ended June 30, 2012, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	732.3		$	177.0		$	193.2		$	—		$	1,102.5
From affiliated customers	—			56.3			250.5			(306.8		)	—
Total Revenues	732.3			233.3			443.7			(306.8		)	1,102.5
Operating expenses
Purchased gas, oil and NGL expense	113.1			4.1			445.0			(248.9		)	313.3
Lease operating expense	82.2			—			—			(1.6		)	80.6
Natural gas, oil and NGL transportation and other handling costs	107.6			20.8			—			(53.2		)	75.2
Gathering, processing and other	—			43.8			0.7			(0.2		)	44.3
General and administrative	61.1			13.2			1.4			(2.9		)	72.8
Production and property taxes	41.1			2.9			0.1			—			44.1
Depreciation, depletion and amortization	381.7			31.7			0.3			—			413.7
Other operating expenses	66.0			—			—			—			66.0
Total operating expenses	852.8			116.5			447.5			(306.8		)	1,110.0
Net gain from asset sales	1.5			—			—			—			1.5
Operating (loss) income	(119.0		)	116.8			(3.8		)	—			(6.0		)
Realized and unrealized gains on derivative contracts	289.0			8.9			0.7			—			298.6
Interest and other income	2.4			0.1			52.7			(52.6		)	2.6
Income from unconsolidated affiliates	0.1			3.2			—			—			3.3
Loss on early extinguishment of debt	—			—			(0.6		)	—			(0.6		)
Interest expense	(47.0		)	(5.9		)	(52.6		)	52.6			(52.9		)
Income (loss) before income taxes	125.5			123.1			(3.6		)	—			245.0
Income taxes	(47.7		)	(42.7		)	1.6			—			(88.8		)
Net income (loss)	77.8			80.4			(2.0		)	—			156.2
Net income attributable to noncontrolling interest	—			(1.7		)	—			—			(1.7		)
Net income (loss) attributable to QEP	$	77.8		$	78.7		$	(2.0	)	$	—		$	154.5