QEP's lines of business include natural gas and oil exploration and production (QEP Energy), midstream field services (QEP Field Services) and marketing (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.

The following table is a summary of operating results by line of business:

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
For the three months ended June 30, 2012	(in millions)
Revenues (1)
From unaffiliated customers	$	335.5		$	83.4		$	80.4		$	-		$	499.3
From affiliated customers		-			30.2			118.2			(148.4	)		-
Total Revenues		335.5			113.6			198.6			(148.4	)		499.3
Operating expenses
Purchased gas, oil and NGL expense		40.6			4.1			197.4			(117.2	)		124.9
Lease operating expense		41.4			-			-			(0.9	)		40.5
Natural gas, oil and NGL transportation and other handling costs		57.2			12.0			-			(28.5	)		40.7
Gathering, processing and other		-			20.4			0.5			(0.3	)		20.6
General and administrative		29.2			9.0			0.1			(1.5	)		36.8
Production and property taxes		18.2			1.2			-			-			19.4
Depreciation, depletion and amortization		197.2			16.1			0.8			-			214.1
Other operating expenses		57.8			-			-			-			57.8
Total operating expenses		441.6			62.8			198.8			(148.4	)		554.8
Operating (loss) income (2)		(106.1	)		50.8			(0.2	)		-			(55.5	)
Realized and unrealized gains (losses) on derivative contracts		81.8			4.8			(4.3	)		-			82.3
Interest and other income		0.7			0.1			26.8			(26.7	)		0.9
Income from unconsolidated affiliates		0.1			1.3			-			-			1.4
Loss on early extinguishment of debt		-			-			(0.6	)		-			(0.6	)
Interest expense		(23.4	)		(3.6	)		(27.9	)		26.7			(28.2	)
(Loss) income before income taxes		(46.9	)		53.4			(6.2	)		-			0.3
Income taxes		16.6			(19.2	)		2.5			-			(0.1	)
Net (loss) income		(30.3	)		34.2			(3.7	)		-			0.2
Net income attributable to noncontrolling interest		-			(0.9	)		-			-			(0.9	)
Net (loss) income attributable to QEP (3)	$	(30.3	)	$	33.3		$	(3.7	)	$	-		$	(0.7	)

⁽¹⁾	The impact of QEP's settled derivative contracts, for the three months ended June 30, 2012, are reflected below operating (loss) income.

⁽²⁾

Operating (loss) income for the three months ended June 30, 2012, excludes the impact of realized commodity derivative contract settlements. During the three months ended June 30, 2012, gains and losses from realized commodity derivative contract settlements were included below operating (loss) income.

⁽³⁾	Net income (loss) attributable to QEP for the three months ended June 30, 2012, includes the impact of unrealized gains and losses from changes in the fair value of the commodity derivative contracts.

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
For the three months ended June 30, 2011	(in millions)
Revenues (1)
From unaffiliated customers	$	555.5		$	102.0		$	150.6		$	-		$	808.1
From affiliated customers		-			20.2			145.2			(165.4	)		-
Total Revenues		555.5			122.2			295.8			(165.4	)		808.1
Operating expenses
Purchased gas, oil and NGL expense		154.7			-			292.5			(143.3	)		303.9
Lease operating expense		35.0			-			-			(0.7	)		34.3
Natural gas, oil and NGL transportation and other handling costs		42.3			1.2			-			(19.5	)		24.0
Gathering, processing and other		-			26.9			0.4			(0.1	)		27.2
General and administrative		22.9			6.8			0.8			(1.8	)		28.7
Production and property taxes		25.4			1.6			0.1			-			27.1
Depreciation, depletion and amortization		172.5			13.5			0.6			-			186.6
Other operating expenses		7.6			-			-			-			7.6
Total operating expenses		460.4			50.0			294.4			(165.4	)		639.4
Net gain (loss) from asset sales		0.2			0.1			(0.1	)		-			0.2
Operating income (2)		95.3			72.3			1.3			-			168.9
Interest and other (loss) income		(0.5	)		-			24.8			(24.7	)		(0.4	)
Income from unconsolidated affiliates		0.1			1.2			-			-			1.3
Interest expense		(20.4	)		(3.1	)		(23.3	)		24.7			(22.1	)
Income before income taxes		74.5			70.4			2.8			-			147.7
Income taxes		(27.7	)		(25.5	)		(1.0	)		-			(54.2	)
Net income		46.8			44.9			1.8			-			93.5
Net income attributable to noncontrolling interest		-			(0.7	)		-			-			(0.7	)
Net income attributable to QEP (3)	$	46.8		$	44.2		$	1.8		$	-		$	92.8

⁽¹⁾

Revenues for the three months ended June 30, 2011, have been recast to reflect QEP's revised reporting of its transportation and handling costs. See Note 2 - Basis of Presentation of Interim Consolidated Financial Statements for additional information. In addition, revenues for the three months ended June 30, 2011, reflect the impact of QEP's settled derivative contracts. See Note 6 - Derivative Contracts for detailed information on derivative contract settlements in the three months ended June 30, 2011.

⁽²⁾	Under hedge accounting, gains and losses from realized commodity derivative contract settlements were included in revenues and operating income during the three months ended June 30, 2011.

⁽³⁾	Under hedge accounting, unrealized gains and losses from changes in the fair value were deferred in accumulated other comprehensive income during the three months ended June 30, 2011.

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
For the six months ended June 30, 2012	(in millions)
Revenues (1)
From unaffiliated customers	$	732.3		$	177.0		$	193.2		$	-		$	1,102.5
From affiliated customers		-			56.3			250.5			(306.8	)		-
Total Revenues		732.3			233.3			443.7			(306.8	)		1,102.5
Operating expenses
Purchased gas, oil and NGL expense		113.1			4.1			445.0			(248.9	)		313.3
Lease operating expense		82.2			-			-			(1.6	)		80.6
Natural gas, oil and NGL transportation and other handling costs		107.6			20.8			-			(53.2	)		75.2
Gathering, processing and other		-			43.8			0.7			(0.2	)		44.3
General and administrative		62.1			13.5			0.1			(2.9	)		72.8
Production and property taxes		41.1			2.9			0.1			-			44.1
Depreciation, depletion and amortization		380.3			31.4			1.6			-			413.3
Other operating expenses		66.4			-			-			-			66.4
Total operating expenses		852.8			116.5			447.5			(306.8	)		1,110.0
Net gain from asset sales		1.5			-			-			-			1.5
Operating (loss) income (2)		(119.0	)		116.8			(3.8	)		-			(6.0	)
Realized and unrealized gains on derivative contracts		289.0			8.9			0.7			-			298.6
Interest and other income		2.4			0.1			52.7			(52.6	)		2.6
Income from unconsolidated affiliates		0.1			3.2			-			-			3.3
Loss on early extinguishment of debt		-			-			(0.6	)		-			(0.6	)
Interest expense		(47.0	)		(5.9	)		(52.6	)		52.6			(52.9	)
Income (loss) before income taxes		125.5			123.1			(3.6	)		-			245.0
Income taxes		(47.7	)		(42.7	)		1.6			-			(88.8	)
Net income (loss)		77.8			80.4			(2.0	)		-			156.2
Net income attributable to noncontrolling interest		-			(1.7	)		-			-			(1.7	)
Net income (loss) attributable to QEP (3)	$	77.8		$	78.7		$	(2.0	)	$	-		$	154.5

⁽¹⁾	The impact of QEP's settled derivative contracts, for the six months ended June 30, 2012, are reflected below operating (loss) income.

⁽²⁾	Operating (loss) income for the six months ended June 30, 2012, excludes the impact of realized commodity derivative contract settlements. During the six months ended June 30, 2012, gains and losses from realized commodity derivative contract settlements were included below operating (loss) income.

⁽³⁾	Net (loss) income attributable to QEP for the six months ended June 30, 2012, includes the impact of unrealized gains and losses from changes in the fair value of the commodity derivative contracts.

	QEP Energy			QEP Field Services			QEP Marketing & Other			Eliminations			QEP Consolidated
For the six months ended June 30, 2011	(in millions)
Revenues (1)
From unaffiliated customers	$	951.7		$	175.3		$	299.0		$	-		$	1,426.0
From affiliated customers		-			43.5			278.3			(321.8	)		-
Total Revenues		951.7			218.8			577.3			(321.8	)		1,426.0
Operating expenses
Purchased gas, oil and NGL expense		154.7			-			570.4			(274.5	)		450.6
Lease operating expense		68.4			-			-			(1.3	)		67.1
Natural gas, oil and NGL transportation and other handling costs		85.8			2.1			-			(42.2	)		45.7
Gathering, processing and other		-			51.7			0.7			-			52.4
General and administrative		46.8			15.8			1.6			(3.8	)		60.4
Production and property taxes		47.6			3.0			0.2			-			50.8
Depreciation, depletion and amortization		349.6			26.7			1.1			-			377.4
Other operating expenses		15.8			-			-			-			15.8
Total operating expenses		768.7			99.3			574.0			(321.8	)		1,120.2
Net gain (loss) from asset sales		0.2			0.1			(0.1	)		-			0.2
Operating income (2)		183.2			119.6			3.2			-			306.0
Interest and other income		0.2			-			49.2			(49.2	)		0.2
Income from unconsolidated affiliates		0.1			2.1			-			-			2.2
Interest expense		(40.3	)		(6.6	)		(46.5	)		49.2			(44.2	)
Income before income taxes		143.2			115.1			5.9			-			264.2
Income taxes		(53.3	)		(41.6	)		(2.0	)		-			(96.9	)
Net income		89.9			73.5			3.9			-			167.3
Net income attributable to noncontrolling interest		-			(1.3	)		-			-			(1.3	)
Net income attributable to QEP (3)	$	89.9		$	72.2		$	3.9		$	-		$	166.0

⁽¹⁾

Revenues for the six months ended June 30, 2011, have been recast to reflect QEP's revised reporting of its transportation and handling costs. See Note 2 - Basis of Presentation of Interim Consolidated Financial Statements for additional information. In addition, revenues for the six months ended June 30, 2011, reflect the impact of QEP's settled derivative contracts. See Note 6 - Derivative Contracts for detailed information on derivative contract settlements in the six months ended June 30, 2011.

⁽²⁾	Under hedge accounting, realized gains and losses from realized commodity derivative contract settlements were included in revenues and operating income during the three and six months ended June 30, 2011.

⁽³⁾	Under hedge accounting, unrealized gains and losses from changes in the fair value were deferred in accumulated other comprehensive income during the three and six months ended June 30, 2011.