Operations by Line of Business

3 Months Ended

Mar. 31, 2015

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 oil and gas marketing, operation of the Haynesville Gathering System and an underground storage facility, and corporate (QEP Marketing and 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.

Our financial results for the three months endedMarch 31, 2014, have been revised, in accordance with GAAP, to reflect the impact of the Midstream Sale. See Note 4 - Discontinued Operations for detailed information on the Midstream Sale.

The following table is a summary of operating results for the three months endedMarch 31, 2015, by line of business:

	QEP Energy			QEP Marketing  and Other			Eliminations			QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	353.3		$	138.3		$	—		$	491.6
From affiliated customers	—			207.5			(207.5		)	—
Total Revenues	353.3			345.8			(207.5		)	491.6
OPERATING EXPENSES
Purchased gas and oil expense	31.2			342.8			(204.6		)	169.4
Lease operating expense	61.8			—			—			61.8
Gas, oil and NGL transportation and other handling costs	67.4			—			(2.3		)	65.1
Gathering and other expense	—			1.7			—			1.7
General and administrative	46.2			1.8			(0.6		)	47.4
Production and property taxes	27.5			0.3			—			27.8
Depreciation, depletion and amortization	192.7			2.7			—			195.4
Impairment and exploration expense	21.1			—			—			21.1
Total Operating Expenses	447.9			349.3			(207.5		)	589.7
Net gain (loss) from asset sales	(27.8		)	(2.7		)	—			(30.5		)
OPERATING INCOME (LOSS)	(122.4		)	(6.2		)	—			(128.6		)
Realized and unrealized gains (losses) on derivative contracts	80.2			0.7			—			80.9
Interest and other income (expense)	(3.5		)	48.0			(47.1		)	(2.6		)
Interest expense	(47.2		)	(36.7		)	47.1			(36.8		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(92.9		)	5.8			—			(87.1		)
Income tax (provision) benefit	33.6			(2.1		)	—			31.5
NET INCOME (LOSS)	$	(59.3	)	$	3.7		$	—		$	(55.6	)

The following table is a summary of operating results for the three months endedMarch 31, 2014, by line of business:

	QEP Energy			QEP Marketing  and Other			Eliminations			Discontinued Operations		QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	613.2		$	204.3		$	—		$	—	$	817.5
From affiliated customers	—			303.5			(303.5		)	—		—
Total Revenues	613.2			507.8			(303.5		)	—		817.5
OPERATING EXPENSES
Purchased gas and oil expense	38.0			497.9			(298.0		)	—		237.9
Lease operating expense	56.4			—			—			—		56.4
Gas, oil and NGL transportation and other handling costs	64.5			—			(4.6		)	—		59.9
Gathering and other expense	—			1.6			—			—		1.6
General and administrative	45.0			1.2			(0.9		)	—		45.3
Production and property taxes	47.4			0.5			—			—		47.9
Depreciation, depletion and amortization	223.4			2.5			—			—		225.9
Impairment and exploration expense	4.2			—			—			—		4.2
Total Operating Expenses	478.9			503.7			(303.5		)	—		679.1
Net gain (loss) from assets sales	2.4			—			—			—		2.4
OPERATING INCOME (LOSS)	136.7			4.1			—			—		140.8
Realized and unrealized gains (losses) on derivative contracts	(78.5		)	(2.4		)	—			—		(80.9		)
Interest and other income (expense)	2.9			48.8			(48.8		)	—		2.9
Interest expense	(48.9		)	(41.8		)	48.8			—		(41.9		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	12.2			8.7			—			—		20.9
Income tax (provision) benefit	(7.1		)	(1.1		)	—			—		(8.2		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	5.1			7.6			—			—		12.7
Net income from discontinued operations, net of income tax	—			—			—			27.0		27.0
NET INCOME (LOSS)	$	5.1		$	7.6		$	—		$	27.0	$	39.7
Identifiable total assets	$	9,004.1		$	225.3		$	—		1,306.2		$	10,535.6