Derivative Contracts (Tables)

3 Months Ended

Mar. 31, 2012

Commodity Derivatives as a Percentage of Reported Production

The following table details the percentage of reported production subject to commodity price derivative contracts for QEP Energy and QEP Field Services.

	Three Months Ended
	March 31,
	2012			2011
QEP Energy
Natural gas derivative volumes as a percent of QEP Energy natural gas production
Fixed price swaps		60	%		43	%
Costless collars		0	%		12	%
Oil derivative volumes as a percent of QEP Energy oil production
Fixed price swaps		37	%		0	%
Costless collars		15	%		35	%
NGL derivative volumes as a percent of QEP Energy NGL production
Fixed price swaps		16	%		0	%
Costless collars		0	%		0	%

QEP Field Services
Ethane derivative volumes as a percent of ethane volumes - QEP Field Services
Fixed price swaps		13	%		0	%
Propane derivative volumes as a percent of propane volumes - QEP Field Services
Fixed price swaps		71	%		0	%

Derivative Volumes and Average Prices

The following table sets forth QEP Energy's volumes and average prices for its commodity derivative contracts as of March 31, 2012:

					Swaps		Collars
Year	Type of Contract	Index	Total Volumes		Average price per unit		Floor price		Ceiling price
			(in millions)
Natural gas sales			(MMBtu)
2012	Swap	NYMEX		57.8	$	4.72
2012	Swap	IFPEPL (1)		6.1		4.47
2012	Swap	IFNPCR (2)		65.4		4.69
2012	Swap	IFCNPTE (3)		7.7		2.67
2013	Swap	NYMEX		29.2		3.68
2013	Swap	IFNPCR (2)		65.7		5.66
Oil sales			(Bbls)
2012	Swap	NYMEX WTI		1.4	$	97.03
2012	Collar	NYMEX WTI		1.1			$	87.50	$	115.36
2013	Swap	NYMEX WTI		0.2		105.80
NGL sales			(Gals)
2012	Swap	Mt. Belvieu Ethane		11.6	$	0.64
2012	Swap	Mt. Belvieu Propane		17.3	$	1.28

(1)	Inside FERC monthly settlement index for the Panhandle Eastern Pipeline Company.

(2)	Inside FERC monthly settlement index for the Northwest Pipeline Corp. Rocky Mountains.

(3)	Inside FERC monthly settlement index for Centerpoint East.

QEP Field Services Outstanding Derivative Contracts

QEP Field Services enters into commodity derivative transactions to manage price risk on extracted NGL volumes. The following table sets forth QEP Field Services' volumes and swap prices for its commodity derivative contracts as of March 31, 2012:


Year	Type of Contract	Index	Total Volumes		Average Swap price per gallon
			(in millions)
NGL sales			(Gals)
2012	Swap	Mt. Belvieu Ethane		11.6	$	0.64
2012	Swap	Mt. Belvieu Propane		9.6	$	1.35

QEP Marketing Outstanding Derivative Contracts

QEP Marketing enters into commodity derivative transactions to lock in a margin on natural gas volumes placed into storage and to lock in a fixed price for some of its customers. The following table sets forth QEP Marketing's volumes and swap prices for its commodity derivative contracts as of March 31, 2012:

Year	Type of Contract	Index	Total Volumes		Average Swaps price per MMBtu
			(in millions)
Natural gas sales			(MMBtu)
2012	Swaps	IFNPCR (1)		1.7	$	4.15
2013	Swaps	IFNPCR (1)		1.2		4.57
Natural gas purchases			(MMBtu)
2012	Swaps	IFNPCR (1)		1.1	$	2.80

(1)

Inside FERC monthly settlement index for the Northwest Pipeline Corp. Rocky Mountains.

Fair values of Derivatives by Balance Sheet Location

The following table presents the balance sheet location of QEP's outstanding commodity derivative contracts on a gross contract basis as opposed to the net contract basis presentation in the Condensed Consolidated Balance Sheets and the related fair values at the balance sheet dates.

		Gross asset derivative instruments fair value					Gross liability derivative instruments fair value
	Balance Sheet line item	March 31, 2012		December 31, 2011		Balance Sheet line item	March 31, 2012		December 31, 2011
		(in millions)					(in millions)
Current
Commodity	Fair value of derivative contracts	$	347.5	$	284.1	Fair value of derivative contracts	$	13.7	$	11.7
Long-term:
Commodity	Fair value of derivative contracts		115.8		123.5	Fair value of derivative contracts		0.3		-
Total commodity derivative instruments		$	463.3	$	407.6		$	14.0	$	11.7

Effects of Derivative Transactions

The effects and location of derivative transactions on the Condensed Consolidated Income Statements are summarized in the following tables.

		Three Months Ended March 31,
Derivatives not designated as hedging instruments	Location of gain (loss) recognized in earnings	2012			2011
		(in millions)
Realized gain (loss) on commodity derivative contracts
QEP Energy
Natural gas derivative contracts		$	85.7		$	(31.2	)
Oil derivative contracts			(2.7	)		-
NGL derivative contracts			0.4			-
QEP Field Services
NGL derivative contracts			1.1			-
QEP Marketing
Natural gas derivative contracts			3.5			-
Total realized gain (loss)	Realized and unrealized gains on commodity derivative instruments		88.0			(31.2	)


Unrealized gain (loss) on commodity derivative contracts
QEP Energy
Natural gas derivative contracts			132.3			31.2
Oil derivative contracts			(11.5	)		-
NGL derivative contracts			2.9			-
QEP Field Services
NGL derivative contracts			3.0			-
QEP Marketing
Natural gas derivative contracts			1.6			-
Total unrealized gain (loss)	Realized and unrealized gains on commodity derivative instruments		128.3			31.2
Total realized and unrealized gain (loss)	Realized and unrealized gains on commodity derivative instruments	$	216.3		$	-

		Three Months Ended March 31,
Cash flow hedge derivative instruments	Location of gain (loss) recognized in earnings	2012		2011
Commodity derivatives			(in millions)
Gain (loss) on derivative instruments for the effective portion of hedge recognized in AOCI	Accumulated other comprehensive income (loss)	$	-	$	0.2
Gain (loss) reclassified from AOCI into income for effective portion of hedge	Natural gas sales		-		73.1
Gain (loss) reclassified from AOCI into income for effective portion of hedge	Oil sales		-		-
Gain (loss) reclassified from AOCI into income for effective portion of hedge	NGL sales		-		-
Gain (loss) reclassified from AOCI into income for effective portion of hedge	Marketing purchases		-		3.4
Gain (loss) recognized in income for the ineffective portion of hedges	Interest and other income		-		(0.2	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details