Operations by Line of Business

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Operations by Line of Business

QEP’s lines of business include oil and gas exploration and production (QEP Energy), midstream field services (QEP Field Services), which includes the ownership and operation of QEP Midstream, 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. QEP owns a 57.8% ownership interest in QEP Midstream and it is consolidated under the voting interest model in QEP Field Services' operating results. The outside ownership interest in QEP Midstream is presented separately as a noncontrolling interest.

The following table is a summary of operating results for the year ended December 31, 2013, by line of business:

	QEP Energy			QEP Field Services			QEP Marketing  & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues (1)
From unaffiliated customers	$	2,092.8		$	282.4		$	560.6		$	—		$	2,935.8
From affiliated customers	—			121.0			1,012.6			(1,133.6		)	—
Total Revenues	2,092.8			403.4			1,573.2			(1,133.6		)	2,935.8
Operating expenses
Purchased gas, oil and NGL expense	197.1			8.9			1,570.5			(1,010.6		)	765.9
Lease operating expense	181.3			—			—			(3.5		)	177.8
Gas, oil and NGL transportation and other handling costs	242.2			13.9			—			(114.7		)	141.4
Gathering, processing and other	—			88.9			1.7			—			90.6
General and administrative	139.7			51.6			4.6			(4.8		)	191.1
Production and property taxes	159.8			6.6			0.1			—			166.5
Depreciation, depletion and amortization	954.2			60.9			0.9			—			1,016.0
Impairment and exploration expenses	104.9			—			—			—			104.9
Total operating expenses	1,979.2			230.8			1,577.8			(1,133.6		)	2,654.2
Net gain (loss) from asset sales	104.1			(0.5		)	(0.6		)	—			103.0
Operating income (1)	217.7			172.1			(5.2		)	—			384.6
Realized and unrealized gains (losses) on derivative contracts	59.1			—			(0.2		)	—			58.9
Interest and other income	3.6			1.2			206.9			(206.5		)	5.2
Income from unconsolidated affiliates	0.2			5.6			—			—			5.8
Loss on early extinguishment of debt	—			—			—			—			—
Interest expense	(192.6		)	(13.1		)	(164.1		)	206.5			(163.3		)
Income before income taxes	88.0			165.8			37.4			—			291.2
Income tax	(49.1		)	(55.4		)	(15.3		)	—			(119.8		)
Net income	38.9			110.4			22.1			—			171.4
Net income attributable to noncontrolling interest	—			(12.0		)	—						(12.0		)
Net income attributable to QEP (2)	$	38.9		$	98.4		$	22.1		$	—		$	159.4
Identifiable total assets	$	7,930.6		$	1,455.1		$	250.7		$	(259.6	)	$	9,376.8
Investment in unconsolidated affiliates				39.0			—			—			39.0
Cash capital expenditures	1,488.6			89.8			24.2			—			1,602.6
Accrued capital expenditures	1,467.2			86.0			24.2			—			1,577.4

____________________________

⁽¹⁾  The impact of QEP's settled derivative contracts, for the year endedDecember 31, 2013, is reflected below operating income.

⁽²⁾  Net income attributable to QEP for the year endedDecember 31, 2013, 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, 2012, by line of business:

	QEP Energy			QEP Field Services			QEP Marketing  & Resources			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
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	236.3			34.4			2.0			(6.1		)	266.6
Production and property taxes	97.2			6.0			0.2			—			103.4
Depreciation, depletion and amortization	838.4			63.2			3.7			—			905.3
Impairment and exploration expenses	144.2			—			—			—			144.2
Total operating expenses	1,944.7			236.1			1,028.2			(724.7		)	2,484.3
Net gain from asset sales	1.2			—			—			—			1.2
Operating (loss) income	(328.1		)	203.1			(8.3		)	—			(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 extinguishment of debt	—			—			(0.6		)	—			(0.6		)
Interest expense	(116.8		)	(13.6		)	(124.4		)	131.9			(122.9		)
(Loss) income before income taxes	(3.7		)	204.8			(2.6		)	—			198.5
Income taxes benefit (provision)	4.3			(71.8		)	1.0			—			(66.5		)
Net income (loss)	0.6			133.0			(1.6		)	—			132.0
Net income attributable to noncontrolling interest	—			(3.7		)	—			—			(3.7		)
Net income (loss) attributable to QEP	$	0.6		$	129.3		$	(1.6	)	$	—		$	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, was 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  & Resources			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
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	707.4			55.7			2.5			—			765.6
Impairment and exploration expenses	228.7			—			—			—			228.7
Total operating expenses	1,974.2			206.3			1,150.6			(676.4		)	2,654.7
Net gain 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	1,338.8			101.6			5.5			—			1,445.9
Goodwill	59.5			—			—			—			59.5

____________________________

⁽¹⁾  Revenues for the year endedDecember 31, 2011, reflect the impact of QEP's settled derivative contracts. See Note 7 - Derivative Contracts, for detailed 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.