S&P 500 (NYSE:SPY) component QEP Resources, Inc. (NYSE:QEP) reported net income above Wall Street’s expectations for the second quarter. QEP Resources, Inc. is an energy company that explores and develops natural gas, oil, and natural gas liquids.
QEP Resources Earnings Cheat Sheet for the Second Quarter
Results: Net income for QEP Resources, Inc. rose to $92.8 million (52 cents per share) vs. $90.8 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 2.2% from the year earlier quarter.
Revenue: Rose 48.1% to $784.1 million from the year earlier quarter.
Actual vs. Wall St. Expectations: The company topped the mean estimate of 33 cents per share.
Quoting Management: “The QEP Resources team continued to execute well in the second quarter,” said Chuck Stanley, President and CEO. “QEP Energy production was up 20% from a year ago. Production growth was driven by strong results from ongoing development activities in our Haynesville Shale and Pinedale Anticline plays, combined with significant contributions from new wells in our Woodford “Cana” Shale and Bakken/Three Forks plays. Our strategy to diversify away from our traditional Rockies focus continues to bear fruit – QEP Energy grew Southern Region production 34% in the second quarter of 2011 compared to the 2010 period. With almost 40% of our 2011 capital directed to oil and liquids-rich gas plays, we grew oil and NGL production 32% in the first half of 2011 compared to the same period a year ago. Oil and NGL production accounted for 27% of QEP Energy net realized production revenues in the first half of 2011 – and that share could grow as we continue to allocate capital to our higher-margin resource plays and benefit from early start-up of our Blacks Fork II gas processing plant in late July,” Stanley added.
The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 30 cents per share.
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).
(Source: Xignite Financials)