| Summary of operating results by line of business |
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 |
|
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