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Q4 2019 Earnings Presentation – QEP Resources, Inc.

QEP Resources, Inc. · Feb 26, 2020 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 1
    Investor Presentation February 2020
  2. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 2
    Corporate Update Asset Overview(1) 4Q & Full Year 2019 Highlights Williston Basin Generated Free Cash Flow (FCF)(2) of 56.2 million in the Net Acres: 94,608 4Q19: 3,341.9 Mboe quarter Achieved D&C costs of 536 per lateral foot in…
  3. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 3
    2019 Guidance Lookback(1) Original 2019 Guidance 2019 Actual Midpoint Oil & Condensate Production (MMBbl) 21.0 21.6 Gas Production (Bcf) 24.0 33.1 NGL Production (MMBbl) 3.95 5.1 Total oil equivalent production (MMBoe) 29.0 32.2…
  4. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 4
    2020 Guidance(1) 1Q'20 Guidance 2020 Guidance Oil & Condensate Production (MMBbl) 5.0 - 5.1 21.35 - 22.45 Gas Production (Bcf) 8.2 - 8.5 31.0 - 34.0 NGL Production (MMBbl) 1.3 - 1.4 5.0 - 5.6 Total oil equivalent production (MMBoe) 7.6…
  5. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 5
    Permian Basin Peer Leading D&C Cost Per Lateral Foot 1,000 QEP 2019 D&C costs per lateral foot 33% below peer(1) 18/19 average of 798 per foot 900 800 700 641 600 536 532 500 400 300 200 100 - Source:…
  6. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 6
    Permian Basin Historical Drilling and Completion Improvement Shorter Drill Times Lateral Length Completed per Day per Frac Crew 12,000 20 Avg. Lateral Length Spud to TD 3,500 10,000 3,000 18 8,000 2,500 Feet 16 Days…
  7. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 7
    Permian Basin Peer Leading Frac Efficiency 3,500 QEP 2019 frac efficiency almost triple peer(1) 18/19 average of 1,097/day 3,300/day 3,000/day 3,000 2,583/day 2,500 2,000 1,500 1,000 500 0 Source:…
  8. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 8
    Transitioning to a Low Cost Operator QEP is Focused on Optimizing Its Cost Structure 250.0 Annual G&A G&A employee-related reductions Lowered non-officer headcount by 60% 200.0 since 2018 Decreased officer headcount by 54% in…
  9. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 9
    Permian Basin LOE Versus Peers Trending towards top-tier LOE LOE Trend performance 90 6.00 2019 reductions attributable to better management of maintenance and 80 5.10 repair, rebidding of all services, and 5.00 reduction of…
  10. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 10
    Permian Basin Mustang Springs DSU Performance (DSU 13) DSU 13 Production Performance DSU 13 Results 14000 Enhanced flowback and 12000 artificial lift strategy shorten well cleanup times and 10,000' Norm Oil Production 10000…
  11. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 11
    Permian Basin Mustang Springs DSU Performance (DSU 12) DSU 12 Production Performance DSU 12 Results 12000 Parent-child interactions 10000 delivered within expectations 10,000' Norm Oil Production 8000 Enhanced flowback and…
  12. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 12
    Over 15 Years of Inventory in the Permian Basin(1) County Line(2) Mustang Springs Forecasted Average Density (wells/mi) Area CL MS/RR Middle Spraberry 5-6 2-4 Lower Spraberry 4-5 4-5 Jo Mill - 4-5 Spraberry Shale 15-16 8 Dean -…
  13. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 13
    QEP Resources 2018 2021 Overview Capital Expenditures Production (MMboe) 1,200 35.0 30.0 1,000 25.0 800 20.0 Millions MMBoe 600 15.0 400 10.0 200 5.0 0 0.0 2018A 2019A 2020F 2021F 2018A 2019A 2020F 2021F Permian…
  14. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 14
    Permian Basin County Line University 0312E/W 0312W 0312E Early Time Observations Wolfcamp A and Spraberry Shale C-bench are 1/2 mile 1/2 mile outperforming expectations Middle Spraberry Spraberry Shale B-bench performing as…
  15. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 15
    Williston Basin 2020 Development Program 2020 Plan Overview Development plan is based on a selective drilling and refrac program Capital program of 120 million Includes 35 million non-op drilling Maintains relatively flat…
  16. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 16
    Permian Basin Water Infrastructure Water System Overview Benefiting from highly competitive produced water treating costs Capacities can be expanded for minimal capital investment Evaluating JVs/partnerships with third parties…
  17. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 17
    QEP Priorities Generate Free Cash Flow Forecasting 100 million in 2020 Continue to optimize capital expenditures, LOE and corporate overhead Organically reduce leverage / strengthen balance sheet Through FCF generation Via…
  18. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 18
    Appendix
  19. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 19
    Derivative Positions As of February 14, 2020 76% of 2020 forecasted oil production covered at an average price of 58/Bbl Production Commodity Derivative Swaps Total Average Swap Price Year Index Volumes per Unit Oil Sales (MMBbls)…
  20. Q4 2019 Earnings Presentation – QEP Resources, Inc. – slide 20
    Debt Maturity Schedule As As of ofFebruary 25,2020 February 20, 2020 Senior Notes Summary Maturity Amount Coupon Duration (yrs) 1,500 3/1/2021 382,397,000 6.875% 1.01 Unsecured 10/1/2022 500,000,000 5.375% 2.60 1,250…

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