Qep Resources Inc (QEP) 銘柄情報

Qep has been sold to diamondback energy

Watch for coming stimulus package and corresponding bump in share price.

NEWS: $QEP Why SM Energy, Centennial Resource Development, and QEP Resources Jumped at the Open Today

Shares of U.S. energy driller SM Energy (NYSE: SM) rose nearly 21% out of the gate on Nov. 18. QEP Resources (NYSE: QEP) jumped around 14%. And Centennial Resource Development (NASDAQ: CDEV) trailed a bit behind at a gain of 9%. The stocks of all three of these e...

Find out more QEP - Why SM Energy, Centennial Resource Development, and QEP Resources Jumped at the Open Today

Beautiful :) must be all that great work my crews and I do.

Looking good. Oil should be starting a slow steady rise through 2021.

QEP Resources: A Solid Prospect

Oct. 1, 2020 10:43 AM ET
Daniel Jones

https://seekingalpha.com/article/4377173-qep-resources-solid-prospect

Summary

QEP Resources has not been treated well in recent months, due in large part to the energy market's volatility.

Leverage is a bit high, but the company is otherwise a solid play to consider long term.

This year has been mixed, but the firm is holding up well given the circumstances and due to recent developments.


QEP Resources (QEP) is an interesting prospect for long-term oil and gas E&P (exploration and production) investors. In recent months, the market has not treated the business well, especially as oil and gas prices have gyrated up and down. Add in that the company does have some leverage, and it's understandable why some shareholders and market participants might be a bit concerned. However, when you take the data into consideration, the company does appear to be more attractive than many other players out there.

Some recent updates

Since publishing its latest quarterly results, the management team at QEP has had some updates for shareholders. Most recently was August 31st when management announced the redemption of its remaining 6.875% Senior Notes due in 2021. These are its nearest-maturity notes and at present, the amount outstanding is just $275.3 million. The exact price being paid for these notes has not been stated, but the indenture for them makes clear that any redemption must be at the greater of 100% of principal or the sum of the present value of all remaining scheduled payments of principal and interest, discounted to the redemption date (semi-annually) at the treasury rate plus 0.50%. In either pricing outcome, the company must also pay any accrued interest payments up to the date of redemption, to their holders.

As of the end of its latest quarter, QEP had cash on hand of just $3.4 million. That said, this leads us to another update announced last month: the receipt of a tax credit entitled to the business. This amount, inclusive of $5.1 million worth of accrued interest, works out to $170.7 million. This, combined with what cash flow QEP has generated, will help it to redeem these notes. This isn't just a one-off event, by the way. During the second quarter this year, the company bought back $57 million worth of Senior Notes. Management said this was done at a discount, but while this is true, that discount was modest at best. The firm's cash flow statement shows $55 million for the notes repaid, plus $0.5 million worth of issuance costs for around $1.5 million reductions in net debt.

Putting health in context

In some respects, 2020 has proven to be a decent year for QEP, while in others, it has proven to be a pain. For instance, production in the latest quarter was up 5.8% compared to the same quarter last year. Year-to-date (through the second quarter), it's up 3.7% compared to 2019. This trend should not be expected to continue though. Earlier this year, management had guided for capex to range between $545 million and $595 million with a mid-point of $570 million. That was reduced in the company's second quarter guidance to between $340 million and $380 million with a mid-point of $360 million.

As capex was reduced, so too were expectations. At the mid-point, initial guidance for 2020 was set at 32.6 million boe (barrels of oil equivalent). This represents a gain of 1.2% over the 32.21 million boe seen in 2019. Now, the expectation is for output to total 28.85 million boe this year. That implies a year-over-year decline of 10.4%. Falling capex is unlikely to have been the only contributor to this revision because management did state in their second quarter earnings release that they did curtail uneconomic production as a result of extreme pricing volatility earlier this year.

Despite this impaired production outlook, the financial results posted by QEP so far this year have been encouraging. According to management, EBITDA in the first half of the year totaled $331.2 million. This is up from $286.3 million the same time last year. If we annualize this figure, investors should be looking at EBITDA of $662.4 million for 2020, while if we see second-half EBITDA outpace first-half by the amount it did in 2019, then this year's should total $767.7 million. With net debt of $1.70 billion, this implies a net leverage ratio for the firm of between 2.22 and 2.57. Most investors prefer net leverage ratios of 2 or lower right now, but this is close enough that QEP should not be considered burdened by its debt. Management should, however, focus intently on reducing leverage if it wants to win the appeal of a broader base of prospective shareholders.

There are other ways to judge the company's results. While second quarter operating cash flow of $72.5 million was below the $117.4 million seen the same quarter last year, first-half operating cash flow of $224.4 million outpaces last year's $195.7 million. If the second half looks like the first half, free cash flow should be at least $88.8 million for 2020. This is at odds, it's worth saying, compared to the $150 million being forecasted by management, but in my opinion, their measure of free cash flow includes things it should not include. For instance, in the latest quarter, the company reported free cash flow of $95.3 million. This is up from -$32 million a year earlier. A more appropriate measure of free cash flow, as it's meant to be, reveals a second-quarter figure of $35.9 million compared to -$52.5 million seen in 2019. For the first half of the year, the figure totaled $9.3 million, up from -$141.4 million on a real basis seen in 2019's first half.

Takeaway

Based on the data provided, it seems to me like QEP continues to chug along. No, the company has not been appreciated by shareholders, as illustrated by the trajectory its shares have been on, but so long as energy prices don't fall much from here, it seems to be a solid prospect to consider, even if leverage is toward the high end of what's accepted at the moment

Natural gas prices going wild the last few days. Up another 6.5% today.

QEP as undervalued as it gets.

WTI now back up, pushing $41/barrel.

JUST IN: $QEP Why QEP Resources Stock Rose as Much as 11.5% Today

Shares of $280 million market cap U.S. onshore driller QEP Resources (NYSE: QEP) advanced as much as 11.5% on Sept. 16. The reason for the advance was a sizable increase in the price of oil. That's great, but the big picture is still pretty ugly and a lot more important than one day's price ...

In case you are interested QEP - Why QEP Resources Stock Rose as Much as 11.5% Today

Umm, which stock ticker are you looking at? They announced they've received their AMT refund early, some $170 M dollars, that they plan to apply to debt reduction.

Not seeing any huge movement this morning. Other than AMT, what has changed? Most oil stocks are still firmly in control of shorts i.e. Godman Suchs and its henchmen. They won't release oil stocks until much later in 2021 and/or if a major "conflict" event (false flag incident leading to ...) breaks out somewhere in the world. Whole industry is dead for now, nothing will happen unless planes, ships, autos come back in full force.

Receipt of $170 million AMT refund is over 50% of the current market cap.

This stock is ridiculously underpriced.

HUGE GAP UP TOMORROW! 5$ COMING!!!!

Great to hear hopefully this is our new bottom

Anyone here able to get it posted over on Yahoo? More followers there than here.

Huge deal for us (qep) in ND

Court Reverses Order to Shut Down Dakota Access Pipeline

https://www.breitbart.com/environment/2020/08/05/court-reverses-order-to-shut-down-dakota-access-pipeline/

BISMARCK, N.D. (AP) — A federal appeals court on Wednesday reversed a judge’s order that shut down the Dakota Access pipeline pending a full environmental review.

The U.S. Court of Appeals for the District of Columbia Circuit sided with pipeline owner Energy Transfer to keep the oil flowing, saying a lower-court judge “did not make the findings necessary for injunctive relief.”

But the appellate court declined to grant Energy Transfer’s motion to block the review, saying the company had “failed to make a strong showing of likely success.”

On July 6, U.S. District Judge James Boasberg ordered the pipeline closed within 30 days while the U.S. Army Corps of Engineers fulfills his demand to conduct a more extensive environmental review than the one that allowed the pipeline to start moving oil near the Standing Rock Indian Reservation three years ago. This process could take more than a year.

Boasberg cited the “potential harm” that the pipeline could cause before the Corps finishes its survey. He rejected the company’s request to halt the order, sending the case to the three-judge appeals panel. The appellate court paused Boasberg’s order in mid-July to give it time to consider the case.

Jan Hasselman, the EarthJustice attorney representing Standing Rock and other tribes who have signed onto the lawsuit, said the appeals court ruling Thursday was not a setback.

“There is more to like than dislike in this ruling,” he said. “There will be a review and a new permit during the next administration.”

Energy Transfer did not immediately return messages for comment Wednesday.

In arguing against the closure, Energy Transfer said the line couldn’t be shut off by the judge’s Aug. 5 deadline. The company said it would take three months to empty the pipe of oil and perform the time-consuming and expensive steps to keep the line from corroding without the flow of oil.

Texas-based Energy Transfer estimated it would cost $24 million to empty the oil and take steps to preserve the pipe. The company said it would have to spend another $67.5 million each year to maintain the line while it’s inoperable.

The pipeline holds about 5 million barrels of oil when full.

It was the subject of months of protests in 2016 and 2017, sometimes violent, during its construction near the Standing Rock Sioux Reservation that straddles the North Dakota-South Dakota border. The tribe took legal action against the pipeline even after it began carrying oil from North Dakota across South Dakota and Iowa to a shipping point in Illinois in June 2017.

Nice day here new bottom found best oil play out here

Thats great, thanks for responding. Oil & gas is a mature industry, and they have sophisticated processes for containment, recovery and even remediation of enviro. damage when it occurs. But it is still susceptible and over 120+ years of being the backbone of human progress and development, hydrocarbons have done a lot of damage to the environment.

To me, a bigger problem is the emerging push to so-called green tech - solar, EV, wind, etc. The leftist morons touting the "green new deal" have no clue of all the WASTE it generates. The average windmill life is 20-30 years max, and from the installed capacity in the US since the '90s, over 30% are now obsolete, unreparable or costly /inefficient to use. Hence lying idle. Same with batteries no one is talking about RECYCLING the gazillions of lithium batt to be manufactured and already in use. And what about discarded solar panels?? How to recycle those?? In addition to the massive global problem of plastics and other petroleum derivatives, we're bringing all these things to the market without a full-fledged lifecycle management program to include decommissioning / recyling / EOL strategies.


America and Europe have been taking the easy way out by shipping all electronic (and plastic) wastes to 3rd world countries far away. Now that they have seen what it truly costs, they're refusing to accept the West's unrecyclable garbage. It took decades to figure out how to recycle lead batteries, and then there was mining for minerals and rare earths that has left entire regions polluted and unusable for humans .... I could go on.

See this getting back to 2s fairly soon nice support at 1.50

Maybe for some companies. Were extremely environmentally proactive. Im literally working on emissions today lol

Why so quiet around here today? QEP getting butchered in the market crash . That is the problem with shale producers -- dirty, costly, inefficient, problem with storage and transport, not to mention huge environmental costs and utter disaster it is for air/water degradation and pollution in the surrounding communities.

Very

Personally yes, i have eyes on operations daily and feel good about the direction of the company

Are you still bullish after that earnings report

I dont have an answer on that one. Don’t believe they’ve discussed it w anyone. Im on the operating/construction/maintenance side of things keeping costs down and facilities running

How much production have they hedged at 43.92 a barrel for 2021 do you think this is a good move

Told you we reduced cost ;)

I feel bad for those selling into the close. Losing my mind with anticipation, 3$+ by open tomorrow!!

Thanks

After the bell

When does earnings come out?

Weve been producing and cutting costs all summer. I may or may not contract for said company ;) I would anticipate us beating earnings.

All intel suggests a big earnings beat. Great news going into the fall and the vaccine.

Any educated guesses to what is in store this evening?

Not selling until 10$

News: $QEP 11 Oil Stocks Gushing Higher on Today's Big Stimulus Deal

Shares of some of the largest independent oil producers in the U.S. are rocketing higher today on news that the European Union has reached agreement on $2.1 trillion in economic stimulus. News of this mega-deal to help businesses and families struggling under the weight of the severe global rece...

Read the whole news QEP - 11 Oil Stocks Gushing Higher on Today's Big Stimulus Deal

Great moves this week, hold strong, 10$ when there's a vaccine

Nothing justifies this price. We should be much higher! Lets go!

Back to where we belong Only the beginning

News: $QEP QEP Resources Announces Second Quarter 2020 Financial and Operational Results Release Date and Conference Call

DENVER, July 15, 2020 (GLOBE NEWSWIRE) -- QEP Resources, Inc. (NYSE: QEP) announced today that it will host a teleconference and webcast to discuss its second quarter 2020 results beginning at 9:00 a.m. ET (7:00 a.m. MT) on Thursday, July 30, 2020. QEP will issue a news release containing s...

In case you are interested QEP - QEP Resources Announces Second Quarter 2020 Financial and Operational Results Release Date and Conference Call

Meant to say Remdesivir inhaler, not nasal spray form.

Agreed. I am looking at about a 6-8 month timeline here for maximization of profits, in which it appears fairly likely that we will have one or more vaccines available for the elderly and front line workers, and increasingly good therapeutics.

I foresee some choppiness in the short term, as the country comes to grips with having to follow CDC guidelines to lower the infection rates and allow the economy to remain open....and grow.

I also foresee a couple of nearer term significant price spikes when we get....

1) A nasal spray form of remdesivir for early home use for covid cases,

and

2) Proof of concept of a vaccine following Phase 3 trials

Can Anybody answer me this will the shutting down of the Dakota access pipeline be very bad for qep resources

There's nowhere to go but up, this downtrend is all Covid. Ignoring the day to day, there undoubtedly will be a vaccine, it's just a matter of when. Big $$$ ahead.

Yes, and look at the exact percentage of ownership. 9.99%. In other words, they went right up the absolute maximum amount of shares they could hold without having to report on SEC forms 3,4, and 5.

BlackRock own 25m shares of QEP, great news

That's great news hopefully it turns around now

Probably not a good idea. No need to put your job in jeopardy. Great profitable company, terrible stock price.

Can no longer discuss the company as i have been hired directly and no longer have a contractor status.

Actually got to 2.80 at 1 stage shows yea alot of upside here especially with oil getting stronger and stronger