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 Field Services 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 three months ended June 30, 2014, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	687.2		$	63.1		$	186.4		$	—		$	936.7
From affiliated customers	—			30.3			420.6			(450.9		)	—
Total revenues	687.2			93.4			607.0			(450.9		)	936.7
Operating expenses
Purchased gas, oil and NGL expense	50.1			1.9			605.4			(421.7		)	235.7
Lease operating expense	59.5			—			—			(2.0		)	57.5
Gas, oil and NGL transportation and other handling costs	72.1			8.8			—			(26.6		)	54.3
Gathering, processing and other	—			24.0			0.5			0.3			24.8
General and administrative	45.9			18.7			0.5			(0.9		)	64.2
Production and property taxes	53.1			2.9			0.1			—			56.1
Depreciation, depletion and amortization	232.3			16.8			0.6			—			249.7
Other operating expenses	3.2			—			—			—			3.2
Total operating expenses	516.2			73.1			607.1			(450.9		)	745.5
Net loss from asset sales	(200.8		)	(0.2		)	—						(201.0		)
Operating income (loss)	(29.8		)	20.1			(0.1		)	—			(9.8		)
Realized and unrealized losses on derivative contracts	(85.3		)	—			(2.7		)	—			(88.0		)
Interest and other income	0.6			—			56.6			(56.4		)	0.8
Income from unconsolidated affiliates	0.1			1.1			—			—			1.2
Interest expense	(56.6		)	(0.7		)	(44.8		)	56.4			(45.7		)
Income (loss) before income taxes	(171.0		)	20.5			9.0			—			(141.5		)
Income tax (provision) benefit	64.0			(7.1		)	(2.7		)	—			54.2
Net income (loss)	(107.0		)	13.4			6.3			—			(87.3		)
Net income attributable to noncontrolling interest	—			(5.0		)	—			—			(5.0		)
Net income (loss) attributable to QEP	$	(107.0	)	$	8.4		$	6.3		$	—		$	(92.3	)
Identifiable total assets	$	9,481.7		$	1,529.2		$	564.1		$	(1,012.2	)	$	10,562.8

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
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 assets sales	100.5			(0.1		)	—			—			100.4
Operating income	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
Identifiable total assets	$	7,984.2		$	1,704.4		$	253.3		$	(494.8	)	$	9,447.1

The following table is a summary of operating results for the six months ended June 30, 2014, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,300.4		$	142.9		$	377.3		$	—		$	1,820.6
From affiliated customers	—			56.7			732.7			(789.4		)	—
Total revenues	1,300.4			199.6			1,110.0			(789.4		)	1,820.6
Operating expenses
Purchased gas, oil and NGL expense	88.1			1.9			1,103.3			(733.3		)	460.0
Lease operating expense	115.9			—			—			(3.1		)	112.8
Gas, oil and NGL transportation and other handling costs	136.6			12.4			—			(51.3		)	97.7
Gathering, processing and other	—			49.7			0.9			—			50.6
General and administrative	87.7			33.1			1.7			(1.7		)	120.8
Production and property taxes	100.5			4.7			0.2			—			105.4
Depreciation, depletion and amortization	455.7			33.3			0.9			—			489.9
Other operating expenses	7.4			—			—			—			7.4
Total operating expenses	991.9			135.1			1,107.0			(789.4		)	1,444.6
Net loss from asset sales	(198.4		)	(0.2		)	—			—			(198.6		)
Operating income	110.1			64.3			3.0			—			177.4
Realized and unrealized losses on derivative contracts	(163.8		)	—			(5.1		)	—			(168.9		)
Interest and other income	3.5			—			105.4			(105.2		)	3.7
Income from unconsolidated affiliates	0.1			3.3			—						3.4
Interest expense	(105.5		)	(1.3		)	(86.6		)	105.2			(88.2		)
Income (loss) before income taxes	(155.6		)	66.3			16.7			—			(72.6		)
Income tax (provision) benefit	58.1			(21.7		)	(5.6		)	—			30.8
Net income (loss)	(97.5		)	44.6			11.1			—			(41.8		)
Net income attributable to noncontrolling interest	—			(10.8		)	—			—			(10.8		)
Net income (loss) attributable to QEP	$	(97.5	)	$	33.8		$	11.1		$	—		$	(52.6	)
Identifiable total assets	$	9,481.7		$	1,529.2		$	564.1		$	(1,012.2	)	$	10,562.8

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
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
Identifiable total assets	7,984.2			1,704.4			253.3			(494.8		)	9,447.1