QEP Resources Inc. Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component QEP Resources Inc. (NYSE:QEP) reported net income above Wall Street’s expectations for the third quarter. QEP Resources is an energy company that explores and develops natural gas, oil and natural gas liquids.

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QEP Resources Earnings Cheat Sheet for the Third Quarter

Results: Net income for QEP Resources Inc. rose to $101.5 million (57 cents per share) vs. $71.1 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 42.8% from the year earlier quarter.

Revenue: Rose 51% to $852.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: QEP beat the mean analyst estimate of 38 cents per share. It beat the average revenue estimate of $660.3 million.

Quoting Management: “The third quarter of 2011 was another strong quarter for QEP Resources,” said Chuck Stanley, President and CEO. “QEP Energy production was up 15% from a year ago, driven by strong results from the Pinedale Anticline and Haynesville Shale plays, combined with significant contributions from new wells in our Woodford “Cana” Shale and Bakken/Three Forks plays. With 65% of our 2011 drilling capital directed to oil and liquids-rich gas plays, we grew oil and NGL production 44% year-to-date compared to the same period a year ago. Oil and NGL production accounted for 29% of QEP Energy net realized production revenues year-to-date and we expect that share to grow as we continue to allocate capital to our higher-margin liquids-rich resource plays. We also completed the successful early startup, commissioning and loading of Field Service’s new Blacks Fork II gas processing plant, which made a significant contribution to both QEP Energy and Field Services results during the quarter and should continue to do so for many years to come,” Stanley added.

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 42 cents versus a mean estimate of net income of 33 cents per share.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 44 cents per share to 40 cents. For the fiscal year, the average estimate has moved up from $1.47 a share to $1.53 over the last ninety days.

Competitors to Watch: Questar Corporation (NYSE:STR), GeoResources, Inc. (NASDAQ:GEOI), Warren Resources, Inc. (NASDAQ:WRES), Continental Resources, Inc. (NYSE:CLR), Chevron Corporation (NYSE:CVX), Oasis Petroleum Inc. (NYSE:OAS), Gastar Exploration Ltd. (AMEX:GST), Encore Energy Partners LP (NYSE:ENP), Devon Energy Corporation (NYSE:DVN), and Double Eagle Petroleum Co. (NASDAQ:DBLE).

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(Source: Xignite Financials)

 

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