Acquisitions & Divestitures

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisitions & Divestitures [Text Block]

Acquisitions

During the six months ended June 30, 2020 and 2019, QEP acquired various oil and gas properties, which primarily included proved leasehold acreage in the Permian Basin for an aggregate purchase price of $4.1 million and $1.8 million, respectively, subject to post-closing purchase price adjustments.

Divestitures

During the six months ended June 30, 2020, QEP received proceeds of $12.9 million and recorded a pre-tax gain on sale of $3.7 million, primarily related to the divestiture of certain properties outside its main operating areas. Gains and losses are reported on the statements of operations within "Net gain (loss) from asset sales, inclusive of restructuring costs".

Haynesville/Cotton Valley Divestiture

In January 2019, QEP sold its Haynesville/Cotton Valley assets (Haynesville Divestiture), and during the year ended December 31, 2019, reached final settlement on asserted environmental and title defects and received aggregate net cash proceeds of $633.9 million. QEP recorded a total net pre-tax loss on sale, including restructuring costs of $4.0 million. During the three and six months ended June 30, 2019, QEP recorded $14.3 million of pre-tax gain on sale and $0.7 million of pre-tax loss on sale, respectively, within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations.

During the three and six months ended June 30, 2019, QEP accounted for revenues and expenses related to Haynesville/Cotton Valley, including the pre-tax gain on sale of $14.3 million and pre-tax loss on sale of $0.7 million, respectively, as income from continuing operations on the statements of operations because the Haynesville Divestiture did not cause a strategic shift for the Company and therefore did not qualify as discontinued operations. During the three months ended June 30, 2019, QEP recorded net income before income taxes related to the divested Haynesville/Cotton Valley properties of $14.4 million, which includes the pre-tax gain on sale of $14.3 million.

Other Divestitures

In addition to the Haynesville Divestiture, during the six months ended June 30, 2019, QEP received net cash proceeds of $39.7 million and recorded a pre-tax gain on sale of $5.5 million, primarily related to the divestiture of properties outside its main operating areas.

These gains and losses were recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations.