Operations by Line of Business

6 Months Ended

Jun. 30, 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 and six months endedJune 30, 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 endedJune 30, 2015, by line of business:

	QEP Energy			QEP Marketing  and Other			Eliminations			QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	407.9		$	200.7		$	—		$	608.6
From affiliated customers	—			248.1			(248.1		)	—
Total Revenues	407.9			448.8			(248.1		)	608.6
OPERATING EXPENSES
Purchased gas and oil expense	16.8			445.4			(245.0		)	217.2
Lease operating expense	57.1			—			—			57.1
Gas, oil and NGL transportation and other handling costs	75.5			—			(2.5		)	73.0
Gathering and other expense	—			1.4			—			1.4
General and administrative	50.0			1.9			(0.6		)	51.3
Production and property taxes	31.2			1.5			—			32.7
Depreciation, depletion and amortization	213.2			2.6			—			215.8
Impairment and exploration expense	1.3			—			—			1.3
Total Operating Expenses	445.1			452.8			(248.1		)	649.8
Net gain (loss) from asset sales	26.5			(2.0		)	—			24.5
OPERATING INCOME (LOSS)	(10.7		)	(6.0		)	—			(16.7		)
Realized and unrealized gains (losses) on derivative contracts	(65.6		)	(0.4		)	—			(66.0		)
Interest and other income	3.1			53.1			(52.4		)	3.8
Interest expense	(52.6		)	(36.0		)	52.4			(36.2		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(125.8		)	10.7			—			(115.1		)
Income tax (provision) benefit	42.4			(3.6		)	—			38.8
NET INCOME (LOSS)	$	(83.4	)	$	7.1		$	—		$	(76.3	)

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

	QEP Energy			QEP Marketing  and Other			Eliminations			Discontinued Operations		QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	687.2		$	200.0		$	—		$	—	$	887.2
From affiliated customers	—			411.6			(411.6		)	—		—
Total Revenues	687.2			611.6			(411.6		)	—		887.2
OPERATING EXPENSES
Purchased gas and oil expense	50.1			605.4			(406.3		)	—		249.2
Lease operating expense	59.5			—			—			—		59.5
Gas, oil and NGL transportation and other handling costs	72.1			—			(4.6		)	—		67.5
Gathering and other expense	—			1.8			—			—		1.8
General and administrative	52.5			0.5			(0.7		)	—		52.3
Production and property taxes	53.1			0.4			—			—		53.5
Depreciation, depletion and amortization	232.3			2.9			—			—		235.2
Impairment and exploration expense	3.2			—			—			—		3.2
Total Operating Expenses	522.8			611.0			(411.6		)	—		722.2
Net gain (loss) from assets sales	(200.8		)	(0.1		)	—			—		(200.9		)
OPERATING INCOME (LOSS)	(36.4		)	0.5			—			—		(35.9		)
Realized and unrealized gains (losses) on derivative contracts	(85.3		)	(2.7		)	—			—		(88.0		)
Interest and other income	0.6			56.7			(56.5		)	—		0.8
Income from unconsolidated affiliates	0.1			—			—			—		0.1
Interest expense	(56.6		)	(44.9		)	56.5			—		(45.0		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(177.6		)	9.6			—			—		(168.0		)
Income tax (provision) benefit	67.2			(5.3		)	—			—		61.9
INCOME (LOSS) FROM CONTINUING OPERATIONS	(110.4		)	4.3			—			—		(106.1		)
Net income from discontinued operations, net of income tax	—			—			—			13.8		13.8
NET INCOME (LOSS)	$	(110.4	)	$	4.3		$	—		$	13.8	$	(92.3	)

The following table is a summary of operating results for the six months endedJune 30, 2015, by line of business:

	QEP Energy			QEP Marketing  and Other			Eliminations			QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	761.2		$	339.0		$	—		$	1,100.2
From affiliated customers	—			455.6			(455.6		)	—
Total Revenues	761.2			794.6			(455.6		)	1,100.2
OPERATING EXPENSES
Purchased gas and oil expense	48.0			788.2			(449.6		)	386.6
Lease operating expense	118.9			—			—			118.9
Gas, oil and NGL transportation and other handling costs	142.9			—			(4.8		)	138.1
Gathering and other expense	—			3.1			—			3.1
General and administrative	96.2			3.7			(1.2		)	98.7
Production and property taxes	58.7			1.8			—			60.5
Depreciation, depletion and amortization	405.9			5.3			—			411.2
Impairment and exploration expense	22.4			—			—			22.4
Total Operating Expenses	893.0			802.1			(455.6		)	1,239.5
Net gain (loss) from asset sales	(1.3		)	(4.7		)	—			(6.0		)
OPERATING INCOME (LOSS)	(133.1		)	(12.2		)	—			(145.3		)
Realized and unrealized gains (losses) on derivative contracts	14.6			0.3			—			14.9
Interest and other income (expense)	(0.4		)	101.1			(99.5		)	1.2
Interest expense	(99.8		)	(72.7		)	99.5			(73.0		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(218.7		)	16.5			—			(202.2		)
Income tax (provision) benefit	76.0			(5.7		)	—			70.3
NET INCOME (LOSS)	$	(142.7	)	$	10.8		$	—		$	(131.9	)

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

	QEP Energy			QEP Marketing  and Other			Eliminations			Discontinued Operations		QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	1,300.4		$	404.3		$	—		—		$	1,704.7
From affiliated customers	—			715.1			(715.1		)	—		$	—
Total Revenues	1,300.4			1,119.4			(715.1		)	—		1,704.7
OPERATING EXPENSES
Purchased gas and oil expense	88.1			1,103.3			(704.3		)	—		487.1
Lease operating expense	115.9			—			—			—		115.9
Gas, oil and NGL transportation and other handling costs	136.6			—			(9.2		)	—		127.4
Gathering and other expense	—			3.4			—			—		3.4
General and administrative	97.5			1.7			(1.6		)	—		97.6
Production and property taxes	100.5			0.9			—			—		101.4
Depreciation, depletion and amortization	455.7			5.4			—			—		461.1
Impairment and exploration expense	7.4			—			—			—		7.4
Total Operating Expenses	1,001.7			1,114.7			(715.1		)	—		1,401.3
Net gain (loss) from assets sales	(198.4		)	(0.1		)	—			—		(198.5		)
OPERATING INCOME (LOSS)	100.3			4.6			—			—		104.9
Realized and unrealized gains (losses) on derivative contracts	(163.8		)	(5.1		)	—			—		(168.9		)
Interest and other income	3.5			105.5			(105.3		)	—		3.7
Income from unconsolidated affiliates	0.1			—			—			—		0.1
Interest expense	(105.5		)	(86.7		)	105.3			—		(86.9		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(165.4		)	18.3			—			—		(147.1		)
Income tax (provision) benefit	60.1			(6.4		)	—			—		53.7
INCOME (LOSS) FROM CONTINUING OPERATIONS	(105.3		)	11.9			—			—		(93.4		)
Net income from discontinued operations, net of income tax	—			—			—			40.8		40.8
NET INCOME (LOSS)	$	(105.3	)	$	11.9		$	—		$	40.8	$	(52.6	)