Skip to main content 2Q 2020 Earnings Presentation – QEP Resources, Inc. | Shale Experts
Loading...
Pm

2Q 2020 Earnings Presentation – QEP Resources, Inc.

QEP Resources, Inc. · Jul 30, 2020 · 26 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. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 1
    Investor Presentation July 2020 1
  2. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 2
    QEPs World Class Assets Williston Basin Net Acres: 94,610 7,973 Mboe 2Q20 Production: 2,515.0 Mboe Q2 2020 Total Production (1) 68% Oil QEP Production Mix 15% NGL Permian Basin 2Q20 17% Gas Net Acres: 49,054 Permian Basin…
  3. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 3
    A Leading North American Independent E&P Company Focused asset footprint World Class High-quality, contiguous acreage Assets 382.3 MMboe of proved reserves(1) Well positioned to develop its portfolio of low-cost, high-quality…
  4. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 4
    Committed to Environmental, Social & Governance Performance We strive to minimize our impact to the environment where we operate, and we focus on the protection of the health, safety and well-being of our employees, contractors,…
  5. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 5
    Second Quarter Results Driven by Strong Execution Generated Net Cash Provided by Operating Activities of 72.5 million and reported a 184.4 million Net Loss for the second quarter 2020 95.3MM Free Cash Flow (1) 157.3 MM 36.6 MM…
  6. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 6
    Updated 2020 Business Plan In response to the continued market volatility, QEP has adjusted activity across its operations to improve cash flow and preserve liquidity Permian Basin (1) Capital spend of 360 million Plan to increase…
  7. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 7
    Updated 2020 Guidance Original 2020 Guidance (1) Updated 2020 Guidance Oil & Condensate Production (MMbbl) 21.35 - 22.45 19.0 - 19.5 Gas Production (Bcf) 31.0 - 34.0 30.0 - 33.0 NGL Production (MMbbl) 5.0 - 5.6 4.1 - 4.6 Total oil…
  8. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 8
    2020 Capital & Production Guidance Capital Program Production Reduced capital program in response to market conditions Peaked in 2Q20 as plan was adjusted in response to market Plan to resume completion activity in the Permian in 4Q20…
  9. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 9
    Permian Basin University 0312E/W 0312W 0312E Performance Observations mile mile Wolfcamp A and Spraberry Shale C-bench wells outperforming Middle Spraberry expectations Lower Spraberry Spraberry Shale B-bench & Lower Spraberry…
  10. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 10
    DSU 0312 Outperforming Average Peer Production Peer Comparison Middle Spraberry, Lower Spraberry, Spraberry Shale and Dean/Wolfcamp A 1,500 150,000 1,250 125,000 Cum 10,000' Norm Oil Production 10,000' Norm Oil…
  11. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 11
    Permian Basin University 1125E 1125E Performance Observations mile Wells completed in March 2020; POP dates were delayed until Middle Spraberry oil prices improved Cut oil sooner with lower water ratios Lower Spraberry Jo Mill…
  12. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 12
    Strong Performance vs. Peers Across All Benches Middle Spraberry Performance Observations 250,000 Cum 10,000' Norm Oil Production Recent County Line development outperforming peers in the 200,000 Basin 150,000 Middle Spraberry…
  13. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 13
    Peer Leading Permian Efficiency D&C Costs Per Lateral Foot QEP has dramatically 2018/2019 Peer Avg. 832 1,000 lowered D&C costs and is 750 641 the most efficient 443 500 on a / Ft. basis 250 0 A B E D C F QEP 18/19 Avg. QEP 2020…
  14. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 14
    Williston Basin Refrac Performance Refrac Initial Performance Incremental Oil Rate (Bopd) 10,000 1,000 Hemi Refracs (2 wells) Five refracs completed in 100 2020 Wells performing as expected 10 0 20 40 60 80 100 120 Up to…
  15. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 15
    Corporate Overhead Continuing to Decline Significantly reduced G&A over last two years Annual G&A Lowered employee headcount by 60% 250.0 Decreased officer headcount by more than half Retained technical, operating and business…
  16. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 16
    2021 Capital & Production Outlook Capital Program Capital 1,200 Permian receiving majority of capital budget allocation with a 1,000 two rig program 800 in millions Plan to complete the remaining four wells on the Disco pad in…
  17. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 17
    High-Quality Permian Acreage Economic at 40 Oil 1 mile Activity through 2021 solely concentrated on County Line development(1) Formation 2021 Well Counts Middle Spraberry (5/mi) Middle Spraberry 11 Lower Spraberry (5/mi) Lower…
  18. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 18
    Credit Facility & Liquidity Overview Commitment: 850 million QEP believes it has sufficient liquidity to meet all financial Maturity: 9/1/2022 commitments and navigate the current market cycle NOT a Reserve Based Loan (RBL) No…
  19. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 19
    Debt Maturity Schedule As of June 30, 2020 1,250 Senior Notes (Unsecured) Outstanding: 1.877 billion Unsecured 1,000 850 million Average coupon: 5.6% Credit Facility Average duration: 3.1 years Key covenant: Limitation on Liens…
  20. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 20
    Creating Value for Shareholders World Class Assets QEPs commitment to execution excellence and capital discipline maximizes Differentiated Well Development value for shareholders Capital Discipline and Cost Improvement Annual…
  21. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 21
    Appendix 22
  22. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 22
    Derivative Positions As of July 22, 2020 Production Commodity Derivative Swaps Year Index Total Volumes Avg. Swap Price per Unit Oil Sales (MMBbls) (/Bbl) 2020 NYMEX WTI 7.9 57.29 2020 Argus WTI Midland 0.7 57.30 2021 NYMEX WTI 8.6…
  23. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 23
    General and Administrative (G&A) Expense Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Change 2020 2019 Change General and administrative (excluding share-based 18.1 26.0 (7.9) 38.3 74.2 (35.9) compensation and…
  24. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 24
    Adjusted EBITDA Management defines Adjusted EBITDA as earnings before interest, income taxes, depreciation, depletion and amortization (EBITDA), adjusted to exclude changes in fair value of derivative contracts, exploration expenses,…
  25. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 25
    Free Cash Flow The Company defines Free Cash Flow as Adjusted EBITDA plus non-cash share-based compensation less interest expense, excluding amortization of deferred finance costs, and accrued property, plant and equipment capital…
  26. 2Q 2020 Earnings Presentation – QEP Resources, Inc. – slide 26

From the store

Browse maps, data & reports in the Shale Experts store