Operations by Line of Business

QEP’s lines of business include natural gas and oil exploration and production (QEP Energy), midstream field services, which includes the ownership and operation of QEP Midstream (QEP Field Services), and marketing and corporate (QEP Marketing & Resources). 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. QEP owns a 57.8% ownership interest in QEP Midstream and it is consolidated under the voting interest model in QEP Field Services' operating results. The outside ownership interest in QEP Midstream is presented separately as a noncontrolling interest.

The following table is a summary of operating results for the three months ended September 30, 2013, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	538.5		$	66.9		$	167.4		$	—		$	772.8
From affiliated customers	—			33.2			272.8			(306.0		)	—
Total Revenues	538.5			100.1			440.2			(306.0		)	772.8
Operating expenses
Purchased gas, oil and NGL expense	39.2			—			438.2			(272.4		)	205.0
Lease operating expense	43.5			—			—			1.5			45.0
Natural gas, oil and NGL transportation and other handling costs	65.1			3.4			—			(34.0		)	34.5
Gathering, processing and other	—			22.0			0.4			—			22.4
General and administrative	33.5			15.8			1.1			(1.1		)	49.3
Production and property taxes	40.4			2.0			0.1			—			42.5
Depreciation, depletion and amortization	236.0			16.8			0.3			—			253.1
Other operating expenses	5.6			—			—			—			5.6
Total operating expenses	463.3			60.0			440.1			(306.0		)	657.4
Net gain from asset sales	12.8			—			—			—			12.8
Operating income (loss)	88.0			40.1			0.1			—			128.2
Realized and unrealized losses on derivative contracts	(25.6		)	—			(2.2		)	—			(27.8		)
Interest and other income	2.6			0.8			52.3			(51.7		)	4.0
Income from unconsolidated affiliates	—			0.8			—			—			0.8
Interest expense	(49.2		)	(3.2		)	(41.0		)	51.7			(41.7		)
Income before income taxes	15.8			38.5			9.2			—			63.5
Income tax provision	(6.2		)	(12.7		)	(3.5		)	—			(22.4		)
Net income	9.6			25.8			5.7			—			41.1
Net income attributable to noncontrolling interest	—			(3.8		)	—			—			(3.8		)
Net income attributable to QEP	$	9.6		$	22.0		$	5.7		$	—		$	37.3

The following table is a summary of operating results for the three months ended September 30, 2012, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	374.0		$	77.9		$	90.5		$	—		$	542.4
From affiliated customers	—			31.8			145.8			(177.6		)	—
Total Revenues	374.0			109.7			236.3			(177.6		)	542.4
Operating expenses
Purchased gas, oil and NGL expense	45.9			4.9			236.7			(144.9		)	142.6
Lease operating expense	43.1			—			—			(0.9		)	42.2
Natural gas, oil and NGL transportation and other handling costs	59.8			6.9			—			(30.4		)	36.3
Gathering, processing and other	—			21.8			0.1			0.2			22.1
General and administrative	31.6			10.5			1.2			(1.6		)	41.7
Production and property taxes	22.5			1.7			0.1			—			24.3
Depreciation, depletion and amortization	218.5			15.9			0.2			—			234.6
Other operating expenses	11.2			—			—			—			11.2
Total operating expenses	432.6			61.7			238.3			(177.6		)	555.0
Operating (loss) income	(58.6		)	48.0			(2.0		)	—			(12.6		)
Realized and unrealized gains (losses) on derivative contracts	41.4			(0.6		)	(4.7		)	—			36.1
Interest and other income	(0.2		)	—			28.4			(28.4		)	(0.2		)
Income from unconsolidated affiliates	—			2.3			—			—			2.3
Loss on early extinguishment of debt	—			—			—			—			—
Interest expense	(24.1		)	(3.5		)	(30.8		)	28.4			(30.0		)
(Loss) income before income taxes	(41.5		)	46.2			(9.1		)	—			(4.4		)
Income tax benefit (provision)	15.3			(16.5		)	3.5			—			2.3
Net (loss) income	(26.2		)	29.7			(5.6		)	—			(2.1		)
Net income attributable to noncontrolling interest	—			(1.0		)	—			—			(1.0		)
Net (loss) income attributable to QEP	$	(26.2	)	$	28.7		$	(5.6	)	$	—		$	(3.1	)

The following table is a summary of operating results for the nine months ended September 30, 2013, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,575.2		$	203.6		$	441.5		$	—		$	2,220.3
From affiliated customers	—			91.4			711.7			(803.1		)	—
Total Revenues	1,575.2			295.0			1,153.2			(803.1		)	2,220.3
Operating expenses
Purchased gas, oil and NGL expense	159.8			8.6			1,150.6			(710.2		)	608.8
Lease operating expense	130.2			—			—			(2.8		)	127.4
Natural gas, oil and NGL transportation and other handling costs	180.8			11.6			—			(86.6		)	105.8
Gathering, processing and other	—			65.3			1.2			—			66.5
General and administrative	100.2			36.2			3.3			(3.5		)	136.2
Production and property taxes	112.7			4.8			0.2			—			117.7
Depreciation, depletion and amortization	712.1			44.3			0.7			—			757.1
Other operating expenses	13.5			—			—			—			13.5
Total operating expenses	1,409.3			170.8			1,156.0			(803.1		)	1,933.0
Net gain (loss) from asset sales	113.4			(0.4		)	—			—			113.0
Operating income (loss)	279.3			123.8			(2.8		)	—			400.3
Realized and unrealized gains on derivative contracts	49.6			—			2.0			—			51.6
Interest and other income	7.5			1.1			158.2			(157.7		)	9.1
Income from unconsolidated affiliates	—			3.7			—			—			3.7
Interest expense	(143.4		)	(12.5		)	(124.3		)	157.7			(122.5		)
Income before income taxes	193.0			116.1			33.1			—			342.2
Income tax provision	(71.1		)	(40.3		)	(13.6		)	—			(125.0		)
Net income	121.9			75.8			19.5			—			217.2
Net income attributable to noncontrolling interest	—			(5.8		)	—			—			(5.8		)
Net income attributable to QEP	$	121.9		$	70.0		$	19.5		$	—		$	211.4

The following table is a summary of operating results for the nine months ended September 30, 2012, by line of business:



	QEP Energy			QEP Field Services			QEP Marketing & Resources			Eliminations			QEP Consolidated
	(in millions)
Revenues
From unaffiliated customers	$	1,106.3		$	254.9		$	283.7		$	—		$	1,644.9
From affiliated customers	—			88.1			396.3			(484.4		)	—
Total Revenues	1,106.3			343.0			680.0			(484.4		)	1,644.9
Operating expenses
Purchased gas, oil and NGL expense	159.0			9.0			681.7			(393.8		)	455.9
Lease operating expense	125.3			—			—			(2.5		)	122.8
Natural gas, oil and NGL transportation and other handling costs	167.4			27.7			—			(83.6		)	111.5
Gathering, processing and other	—			65.6			0.8			—			66.4
General and administrative	92.7			23.7			2.6			(4.5		)	114.5
Production and property taxes	63.6			4.6			0.2			—			68.4
Depreciation, depletion and amortization	600.2			47.6			0.5			—			648.3
Other operating expenses	77.2			—			—			—			77.2
Total operating expenses	1,285.4			178.2			685.8			(484.4		)	1,665.0
Net gain from asset sales	1.5			—			—			—			1.5
Operating (loss) income	(177.6		)	164.8			(5.8		)	—			(18.6		)
Realized and unrealized gains (losses) on derivative contracts	330.4			8.3			(4.0		)	—			334.7
Interest and other income	2.2			0.1			81.1			(81.0		)	2.4
Income from unconsolidated affiliates	0.1			5.5			—			—			5.6
Loss on early extinguishment of debt	—			—			(0.6		)	—			(0.6		)
Interest expense	(71.1		)	(9.4		)	(83.4		)	81.0			(82.9		)
Income (loss) before income taxes	84.0			169.3			(12.7		)	—			240.6
Income taxes	(32.4		)	(59.2		)	5.1			—			(86.5		)
Net income (loss)	51.6			110.1			(7.6		)	—			154.1
Net income attributable to noncontrolling interest	—			(2.7		)	—			—			(2.7		)
Net income (loss) attributable to QEP	$	51.6		$	107.4		$	(7.6	)	$	—		$	151.4