QEP Resources Inc (NYSE:QEP) announced third quarter 2017 operating and financial results. Chuck Stanley, the CEO, Chairman and President, expressed that the closing of the Pinedale Divestiture and their 2017 Permian Basin Acquisition supports their transition to turn an increasingly crude oil-focused firm, expands their inventory of core acreage based in the Midland Basin and strengthens their ability to enhance shareholder value.
Moving forward, they are advancing their 2018 capital investment plan to closely align with estimated cash flows while recording an oil production growth pace in the mid-teens versus 2017 projection. In addition, they continue to assess the monetization of non-core assets to further streamline their portfolio and offer additional liquidity to assist support future growth.
QEP Resources posted a net loss of $3.3 million for Q3 2017 versus a net loss of $50.9 million, for the same period of 2016. Net income or loss comprises non-cash losses and gains related with the change in the fair value of derivatives, losses and gains from asset sales, certain other items and asset impairments. Discounting these items, the firm’s adjusted net loss came at $23.9 million in Q3 2017 versus $51.1 million, for the third quarter 2016.
Adjusted EBITDA for Q3 2017 came at $193.1 million versus $169.2 million for Q3 2016, a 14% jump, mainly due to a hike in average realized prices and a drop in transportation and processing costs, partly offset by a drop in oil equivalent production and a jump in lease operating expense.
QEP Resources reported that Oil equivalent production came at 14,124.1 Mboe for Q3 2017 versus 14,445.8 Mboe for the same quarter of 2016, a 2% drop. NGL and Oil production were down 6% and 4%, respectively, while natural gas production was almost flat in Q3 2017 over the third quarter 2016. Oil production dropped due to a decline in completion measures and operational concerns in the Williston Basin.