Operations by Line of Business

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Operations by Line of Business

Operations by Line of Business

QEP’s lines of business include oil and gas exploration and production (QEP Energy); and marketing, the Haynesville Gathering System, an underground storage reservoir, and corporate (QEP Marketing & Other). 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 endedSeptember 30, 2014, by line of business:

	QEP Energy			QEP Marketing  & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	652.9		$	257.1		$	—		$	910.0
From affiliated customers	—			417.8			(417.8		)	—
Total revenues	652.9			674.9			(417.8		)	910.0
Operating expenses
Purchased gas, oil and NGL expense	32.8			668.3			(412.7		)	288.4
Lease operating expense	61.1			—			—			61.1
Gas, oil and NGL transportation and other handling costs	75.2			—			(4.1		)	71.1
Gathering and other expense	—			1.4			—			1.4
General and administrative	44.3			6.1			(1.0		)	49.4
Production and property taxes	59.3			0.1			—			59.4
Depreciation, depletion and amortization	249.0			2.4			—			251.4
Impairment and exploration expense	0.9			—			—			0.9
Total operating expenses	522.6			678.3			(417.8		)	783.1
Net (loss) gain from asset sales	(11.9		)	0.1						(11.8		)
Operating income (loss)	118.4			(3.3		)	—			115.1
Realized and unrealized gains on derivative contracts	154.1			1.6			—			155.7
Interest and other income	3.9			56.6			(56.3		)	4.2
Income from unconsolidated affiliates	0.1			—			—			0.1
Interest expense	(57.0		)	(40.8		)	56.3			(41.5		)
Income before income taxes	219.5			14.1			—			233.6
Income tax provision	(72.7		)	(7.2		)	—			(79.9		)
Income from continuing operations	146.8			6.9			—			153.7
Net income from discontinued operations, net of income tax	—			—			—			17.4
Net income attributable to QEP	$	146.8		$	6.9		$	—		$	171.1

The following table is a summary of operating results for the three months endedSeptember 30, 2013, by line of business:

	QEP Energy			QEP Marketing  & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	538.5		$	181.0		$	—		$	719.5
From affiliated customers	—			265.6			(265.6		)	—
Total revenues	538.5			446.6			(265.6		)	719.5
Operating expenses
Purchased gas, oil and NGL expense	39.2			438.2			(257.9		)	219.5
Lease operating expense	43.5			—			—			43.5
Gas, oil and NGL transportation and other handling costs	65.1			—			(6.5		)	58.6
Gathering and other expense	—			2.1			—			2.1
General and administrative	33.5			8.4			(1.2		)	40.7
Production and property taxes	40.4			0.2			—			40.6
Depreciation, depletion and amortization	236.0			2.4			—			238.4
Impairment and exploration expense	5.6						—			5.6
Total operating expenses	463.3			451.3			(265.6		)	649.0
Net gain from assets sales	12.8			—			—			12.8
Operating income (loss)	88.0			(4.7		)	—			83.3
Realized and unrealized losses on derivative contracts	(25.6		)	(2.2		)	—			(27.8		)
Interest and other income	2.6			52.2			(48.7		)	6.1
Income from unconsolidated affiliates	—			—			—			—
Interest expense	(49.2		)	(40.9		)	48.7			(41.4		)
Income before income taxes	15.8			4.4			—			20.2
Income tax (provision) benefit	(6.2		)	(1.9		)	—			(8.1		)
Income from continuing operations	9.6			2.5			—			12.1
Net income from discontinued operations, net of income tax	—			—			—			25.2
Net income attributable to QEP	$	9.6		$	2.5		$	—		$	37.3

The following table is a summary of operating results for the nine months endedSeptember 30, 2014, by line of business:

	QEP Energy			QEP Marketing  & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,953.3		$	661.4		$	—		$	2,614.7
From affiliated customers	—			1,132.9			(1,132.9		)	—
Total revenues	1,953.3			1,794.3			(1,132.9		)	2,614.7
Operating expenses
Purchased gas, oil and NGL expense	120.9			1,771.6			(1,117.0		)	775.5
Lease operating expense	177.0			—			—			177.0
Gas, oil and NGL transportation and other handling costs	211.8			—			(13.3		)	198.5
Gathering and other expense	—			4.8			—			4.8
General and administrative	132.0			17.6			(2.6		)	147.0
Production and property taxes	159.8			1.0			—			160.8
Depreciation, depletion and amortization	704.7			7.8			—			712.5
Impairment and exploration expense	8.3			—			—			8.3
Total operating expenses	1,514.5			1,802.8			(1,132.9		)	2,184.4
Net loss from asset sales	(210.3		)	—			—			(210.3		)
Operating income (loss)	228.5			(8.5		)	—			220.0
Realized and unrealized losses on derivative contracts	(9.7		)	(3.5		)	—			(13.2		)
Interest and other income	7.4			162.0			(161.6		)	7.8
Income from unconsolidated affiliates	0.2			—			—			0.2
Interest expense	(162.5		)	(127.5		)	161.6			(128.4		)
Income before income taxes	63.9			22.5			—			86.4
Income tax provision	(14.6		)	(11.5		)	—			(26.1		)
Income from continuing operations	49.3			11.0			—			60.3
Net income from discontinued operations, net of income tax	—			—			—			58.2
Net income attributable to QEP	$	49.3		$	11.0		$	—		$	118.5

The following table is a summary of operating results for the nine months endedSeptember 30, 2013, by line of business:

	QEP Energy			QEP Marketing  & Other			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,575.2		$	489.6		$	—		$	2,064.8
From affiliated customers	—			686.0			(686.0		)	—
Total revenues	1,575.2			1,175.6			(686.0		)	2,064.8
Operating expenses
Purchased gas, oil and NGL expense	159.8			1,150.5			(660.0		)	650.3
Lease operating expense	130.2			—			—			130.2
Gas, oil and NGL transportation and other handling costs	180.8			—			(22.3		)	158.5
Gathering and other expense	—			6.4			—			6.4
General and administrative	100.2			20.3			(3.7		)	116.8
Production and property taxes	112.7			1.0			—			113.7
Depreciation, depletion and amortization	712.1			7.2			—			719.3
Impairment and exploration expense	13.5			—			—			13.5
Total operating expenses	1,409.3			1,185.4			(686.0		)	1,908.7
Net gain from asset sales	113.4			—			—			113.4
Operating income (loss)	279.3			(9.8		)	—			269.5
Realized and unrealized gains on derivative contracts	49.6			2.0			—			51.6
Interest and other income	7.5			158.4			(143.2		)	22.7
Interest expense	(143.4		)	(124.5		)	143.2			(124.7		)
Income before income taxes	193.0			26.1			—			219.1
Income tax provision	(71.1		)	(11.4		)	—			(82.5		)
Income for continuing operations	121.9			14.7			—			136.6
Net income from discontinued operations, net of income tax	—			—			—			74.8
Net income attributable to QEP	$	121.9		$	14.7		$	—		$	211.4