Operations by Line of Business

9 Months Ended

Sep. 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 a gas gathering system and an underground gas storage facility and corporate activities (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 nine months endedSeptember 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 endedSeptember 30, 2015, by line of business:

	QEP Energy			QEP Marketing  and Other			Eliminations			QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	382.6		$	154.1		$	—		$	536.7
From affiliated customers	—			263.4			(263.4		)	—
Total Revenues	382.6			417.5			(263.4		)	536.7
OPERATING EXPENSES
Purchased gas and oil expense	23.6			412.1			(260.6		)	175.1
Lease operating expense	56.7			—			—			56.7
Gas, oil and NGL transportation and other handling costs	80.1			—			(2.0		)	78.1
Gathering and other expense	—			1.3			—			1.3
General and administrative	41.2			1.6			(0.8		)	42.0
Production and property taxes	29.9			0.3			—			30.2
Depreciation, depletion and amortization	235.7			2.4			—			238.1
Impairment and exploration expense	15.8			—			—			15.8
Total Operating Expenses	483.0			417.7			(263.4		)	637.3
Net gain (loss) from asset sales	13.2			(0.3		)	—			12.9
OPERATING INCOME (LOSS)	(87.2		)	(0.5		)	—			(87.7		)
Realized and unrealized gains (losses) on derivative contracts	152.3			1.3			—			153.6
Interest and other income	0.9			52.0			(52.6		)	0.3
Interest expense	(52.4		)	(36.6		)	52.6			(36.4		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	13.6			16.2			—			29.8
Income tax (provision) benefit	(2.8		)	(5.9		)	—			(8.7		)
NET INCOME (LOSS)	$	10.8		$	10.3		$	—		$	21.1

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

	QEP Energy			QEP Marketing  and Other			Eliminations			Discontinued Operations		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 and oil 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	49.0			1.4			(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	527.3			673.6			(417.8		)	—		783.1
Net gain (loss) from assets sales	(11.9		)	0.1			—			—		(11.8		)
OPERATING INCOME (LOSS)	113.7			1.4			—			—		115.1
Realized and unrealized gains (losses) 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 (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	214.8			18.8			—			—		233.6
Income tax (provision) benefit	(69.1		)	(10.8		)	—			—		(79.9		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	145.7			8.0			—			—		153.7
Net income from discontinued operations, net of income tax	—			—			—			17.4		17.4
NET INCOME (LOSS)	$	145.7		$	8.0		$	—		$	17.4	$	171.1

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

	QEP Energy			QEP Marketing  and Other			Eliminations			QEP Consolidated
	(in millions)
REVENUES
From unaffiliated customers	$	1,143.8		$	493.1		$	—		$	1,636.9
From affiliated customers	—			719.0			(719.0		)	—
Total Revenues	1,143.8			1,212.1			(719.0		)	1,636.9
OPERATING EXPENSES
Purchased gas and oil expense	71.6			1,200.3			(710.2		)	561.7
Lease operating expense	175.6			—			—			175.6
Gas, oil and NGL transportation and other handling costs	223.0			—			(6.8		)	216.2
Gathering and other expense	—			4.4			—			4.4
General and administrative	137.4			5.3			(2.0		)	140.7
Production and property taxes	88.6			2.1			—			90.7
Depreciation, depletion and amortization	641.6			7.7			—			649.3
Impairment and exploration expense	38.2			—			—			38.2
Total Operating Expenses	1,376.0			1,219.8			(719.0		)	1,876.8
Net gain (loss) from asset sales	11.9			(5.0		)	—			6.9
OPERATING INCOME (LOSS)	(220.3		)	(12.7		)	—			(233.0		)
Realized and unrealized gains (losses) on derivative contracts	166.9			1.6			—			168.5
Interest and other income (expense)	0.5			153.1			(152.1		)	1.5
Interest expense	(152.2		)	(109.3		)	152.1			(109.4		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(205.1		)	32.7			—			(172.4		)
Income tax (provision) benefit	73.2			(11.6		)	—			61.6
NET INCOME (LOSS)	$	(131.9	)	$	21.1		$	—		$	(110.8	)

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

	QEP Energy			QEP Marketing  and Other			Eliminations			Discontinued Operations		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 and oil 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	146.5			3.1			(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	1,529.0			1,788.3			(1,132.9		)	—		2,184.4
Net gain (loss) from assets sales	(210.3		)	—			—			—		(210.3		)
OPERATING INCOME (LOSS)	214.0			6.0			—			—		220.0
Realized and unrealized gains (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 (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	49.4			37.0			—			—		86.4
Income tax (provision) benefit	(9.0		)	(17.1		)	—			—		(26.1		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	40.4			19.9			—			—		60.3
Net income from discontinued operations, net of income tax	—			—			—			58.2		58.2
NET INCOME (LOSS)	$	40.4		$	19.9		$	—		$	58.2	$	118.5