QEP Resources Inc (QEP)

[VegasMcKnight]

AH is now $1.54, Going up!!!

[VegasMcKnight]

QEP should have a crazy but solid run up tomorrow. Can't wait to see what it does!!!

[interloper]

Holy moly, running AH. Almost sold today, whew

[VegasMcKnight]

This could go nuts tomorrow $3.00 to $4.00 easily.

[VegasMcKnight]

Beautiful Press Release: QEP Increases Liquidity by More Than $500 Million

[GreenStreet]

After hours yeah baby run

[VegasMcKnight]

Nice Close @ $1.08, AH is $1.30!!!

[mario3349]

Over the next month I see this topping out in the $1.40's short term. After a slow down or pull back I see it going to $2.00 and above by years end. It's all about production and demand.

[conesa]

What is the sell target price if we buy now?

[mario3349]

The fundamentals of this stock are real solid. This is way under valued right now. One of the best oil plays out there. BUY now and you will be very happy you did in about a month...

[doumdirty]

Rock and roll guys! Now waiting for my other 10 baggers to bounce!

[TRCPA]

QEP is in the upper echelon of the smaller oil companies now in perfect position to take advantage of an economy that is....and will continue to be....in growth phase, coming off a complete shutdown.

QEP was able to beat earnings estimates by a big number in Q1, even during covid shutdown in March.

[TRCPA]

Zacks gives A value rating to QEP Resources...…..

https://www.zacks.com/stock/news/952271/why-is-qep-resources-qep-down-61-since-last-earnings-report

A month has gone by since the last earnings report for QEP Resources (QEP - Free Report) . Shares have lost about 6.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is QEP Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

QEP Resources Q1 Earnings Beat Estimates, Revenues Miss Mark

QEP Resources, Inc. delivered strong first-quarter 2020 earnings on the back of higher output at the Permian play. The upstream player’s output of 7,930.9 thousand barrels of oil equivalent (MBoe) surpassed the Zacks Consensus Estimate of 7,759 MBoe.

The company’s adjusted net income per share of 21 cents outpaced the Zacks Consensus Estimate of 2 cents and also increased 40% from the year-ago figure of 15 cents.

However, quarterly revenues of $225.8 million lagged the Zacks Consensus Estimate by 16.82%. Moreover, the top line deteriorated 19.5% from the year-ago figure of $280.6 million, primarily due to weak commodity price realizations.

VOLUME ANALYSIS

Production of crude and natural gas totalled 7,930.9 Mboe (66% oil and condensate), up 1.6% from the year-ago figure of 7,806.3 Mboe, primarily reflecting the expanded production volumes in the Permian Basin.

Natural gas volumes substantially dropped 12% year over year to 8.1 billion cubic feet (Bcf) while natural gas liquids output improved 16% to 1,369.1 thousand barrels (Mbbl). Oil volumes improved from 5,083.6 Mbbl in first-quarter 2019 to 5,219.1 Mbbl in the quarter under review.

Moreover, the company’s Permian Basin production from the area rose 21% year over year to a record 4,946.7 Mboe– accounting for 62% of the total output. Investors should know that QEP Resources allocated bulk of its 2019 capital budget to this lucrative basin as it aims at transforming itself into a Permian pure play.

Realized Prices

QEP Resources’ net realized natural gas price in the quarter was 81 cents per thousand cubic feet, down 67.5% from the year-ago level of $2.49. The realized price also fell shy of the Zacks Consensus Estimate of $1.03 per Mcf of gas. Net oil price realization declined 14.1% year over year to $42.15 per barrel and was also below the Zacks Consensus Estimate of $43.36 per barrel. Finally, net NGLs price realization plummeted 51% from the first quarter of 2019 to $7.02 per barrel.

Costs, Capex and Balance Sheet

Total operating expenses in the quarter decreased significantly to $236.7 million from $283.2 million a year ago. Moreover, QEP Resources’ first-quarter lease operating expenses came in at $40.2 million, down 22% from the same quarter last year, while general and administrative costs fell 7% year over year. Capital investment excluding acquisitions increased 6.7% year over year to $178.5 million in the first quarter, mainly due to rise in completion activities in the Permian Basin and recompletion activity in the Williston Basin.

As of Mar 31, 2020, QEP Resources had $70.3 million in cash and cash equivalents. The company’s long-term debt was $1,587.4 million, representing a debt-to-capitalization of 34.4%

2020 Guidance

In response to the coronavirus-induced sudden oil price slump, QEP Resourcesis taking steps to rationalize its planned activities and capital spending for the current year.

Amid the growing crisis, this Denver, CO-based company reduced its 2020 capital expense by around 32% to $385 million. Moreover, the independent energy player anticipates generating free cash flow of a minimum of $100 million in the ongoing year.

Notably, the company suspended completion activities in the Permian Basin until November at the minimum. It also halted its Williston Basin’s refracturing program for the remainder of the year. The company further ramped down its drilling rig functioning in the Permian Basin to a single rig for the rest of the year. Moreover, QEP Resources set up well shut-in strategy to deal with low- margin wells independent of hedge position.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 120.11% due to these changes.

VGM Scores

At this time, QEP Resources has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise QEP Resources has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

[Hercules1]

$QEP:

It should be able to close around $1.10

[Hercules1]

$QEP:

One of the very best oil and gas stocks here.


The run is going to continue.

[Cujo1972]

There’s the dollar break. Let’s keep it going

[interloper]

We must have bought around the same price. I also went green today.

[Juschilln]

Yes, hope this holds and the turnaround is real.

[GreenStreet]

Nice day

[Diversified]

$1.00 break today coming!!!

[Diversified]

So is my account in the green! $1.00 soon.

[GreenStreet]

She’s moving

[Diversified]

Is it finally time for QEP to start its move to get and stay over $1.00?

[Cujo1972]

Good call

[Diversified]

Grabbed low .60’zz. Feel like I’m buying a falling knife by averaging down.

[Cujo1972]

Hell yeah!

[Diversified]

Just snagged some more $.71’zzz. Let’s see how these 30,000 shares look in 6 months.

[Diversified]

Hmmm. What do you think a fair market value is here?

[Happycoins]

Barron’s suggests seven potential take over targets for 2020, including Laredo Petroleum, Centennial Resource Development (NASDAQ:CDEV), Matador Resources (NYSE:MTDR), QEP Resources (NYSE:QEP), SM Energy (NYSE:SM), WPX Energy (NYSE:WPX) and Halcon Resources












https://oilprice.com/Energy/Energy-General/The-Hottest-Permian-Takeover-Targets-For-2020.amp.html

[Happycoins]

Easy triple play.
A good dividend paying stock.
NYSE
Hedge funds are going to be jumping back in.
Shorts will want to cover now to lock in
Their profits.
Retail investors will take notice.
GLTA

[Diversified]

QEP on the move!

[TRCPA]

I think the shorts are mostly out now. They did the best they could do playing a very bad hand, after those stunning Q1 numbers came out.

[Hercules1]

$QEP:


oil prices are moving in the right direction.

stock price is stable and moving in the right direction.


markets are recovering.



that is all that matters.


some experts say that price of oil can hit $100 a barrel in a year.

[TRCPA]

How quickly it all changes. Goldman Sachs: Oil Demand Could Exceed Supply By End-May

By Irina Slav - May 08, 2020, 9:00 AM CDT

https://oilprice.com/Energy/Crude-Oil/Goldman-Sachs-Oil-Demand-Could-Exceed-Supply-By-End-May.html

[Diversified]

Yeah man. Burn shorts burn!

[TRCPA]

Looks like we are at a new plateau here, and readying for the next move up. Shorts appear to have mostly left the building after trying to financially recover from being shocked by the great Q1 numbers.

[MCIGGY]

I noticed that also, the problem is they are currently priced like a pink sheet stock with mostly flippers buying and selling them now, there are a bunch of once legit stocks in this sector trading the same way, until they become too expensive to buy 30,000 shares on a whim, they will trade like this.

[Diversified]

Can’t seem to get any traction here.

[Happycoins]

Qep is trading like a pink sheet stock.
Increments of .0001
This type of trading won't last long

[Hercules1]

$QEP:



oil prices are skyrocketing.



https://oilprice.com/oil-price-charts

[Cujo1972]

Nice!

[Happycoins]

In at .76
Takeovers in the oil and gas are coming.

[doumdirty]

https://seekingalpha.com/article/4330759-shale-marked-for-death-who-dies-who-thrives

[TRCPA]

Correct.

[GreenStreet]

Only matter of time I’m 10k shares in

[Diversified]

25,000 shares in. I’m definitely done. Cheers to long term oil and QEP continuing success. Love the dividend yield.

[Diversified]

Wow. I caught some .73-75’zzz

[rhainswo]

Can't get my head around this

[Hercules1]

$QEP:


bottom line is this:



this is a stock that is going to deliver 700% to 1000% by the end of the year.



I think I can hold on for those kind of gains.

[Hercules1]

$QEP:

Feat your eyes on this.


all these fund managers are not wrong to own this stock. some of the biggest names are here:



QEP Resources Inc, Inst Holders, 1Q 2020 (QEP)
3:53 am ET April 19, 2020 (Dow Jones) Print


The following table shows the largest shareholders in QEP RESOURCES INC COM (QEP) for the quarter ended March 31, 2020, listed by holding size. The list represents up to 50 of the largest holders in the company.

Note: Unless otherwise mentioned the reporting date is 03/31/2020

Institution Shares Shares % Last
Held Changed Held Report


BlackRock Fund Advisors 35,663,759 2,050,861 14.726 12/31
The Vanguard Group Inc. 24,810,465 (405,221) 10.245 12/31
Dimensional Fund Advisors LP 17,564,358 (158,568) 7.253 12/31
SSgA Funds Management Inc. 15,043,268 1,924,159 6.212 12/31
Elliott Management Corp. 11,700,000 0 4.831 12/31
AllianceBernstein LP 10,082,978 (700,158) 4.163 12/31
Key Group Holdings (Cayman) Lt 9,965,979 3,470,855 4.115 12/31
Wellington Management Co. LLP 8,504,194 5,101,825 3.511 12/31
Millennium Management LLC 6,647,418 (1,403,990) 2.745 12/31
D. E. Shaw & Co. LP 5,539,296 (2,123,962) 2.287 12/31
Wells Capital Management Inc. 5,518,408 661,493 2.279 12/31



Wells Capital Management Inc. 5,518,408 661,493 2.279 12/31
Fidelity Management & Research 5,126,980 1,608,300 2.117 12/31
Citadel Advisors LLC 4,416,660 (440,902) 1.824 12/31
Geode Capital Management LLC 3,271,449 196,393 1.351 12/31
Caymus Capital Partners LP 3,228,143 3,228,143 1.333 12/31
Connor Clark & Lunn Investmen 3,218,111 (195,779) 1.329 12/31
Northern Trust Investments In 3,101,060 23,803 1.280 12/31
Arrowstreet Capital LP 3,066,836 1,562,033 1.266 12/31
Renaissance Technologies LLC 2,886,800 2,886,800 1.192 12/31
Marshall Wace North America LP 2,516,661 2,375,753 1.039 12/31
Goldman Sachs & Co. LLC (Priva 2,486,021 1,105,045 1.027 12/31
Mellon Investments Corp. 2,450,037 841,537 1.012 12/31
River Road Asset Management LL 2,176,118 1,628,546 0.899 12/31
Charles Schwab Investment Mana 1,950,178 143,048 0.805 03/31
GLG Partners LP 1,911,930 1,911,930 0.789 12/31
Credit Suisse Securities (USA) 1,896,180 (15,613,857) 0.783 12/31
Principal Global Investors LLC 1,892,941 (1,096) 0.782 12/31
Foundry Partners LLC (Minnesot 1,892,088 1,892,088 0.781 12/31
DWS Investments (UK) Ltd. 1,545,403 1,484,801 0.638 12/31
Invesco Advisers Inc. 1,439,126 0 0.594 12/31




Alyeska Investment Group LP 1,439,052 (794,693) 0.594 12/31
Aristotle Capital Boston LLC 1,389,007 (54,948) 0.574 12/31
Parametric Portfolio Associate 1,350,090 251,697 0.557 12/31
Marshall Wace LLP 1,333,783 1,333,783 0.551 12/31
UBS Securities LLC 1,321,804 292,795 0.546 12/31
Pinnacle Associates Ltd. 1,319,166 (301,123) 0.545 12/31
Morgan Stanley & Co. LLC 1,300,740 (1,316,379) 0.537 12/31
Columbia Management Investment 1,218,800 (32,210) 0.503 12/31
AQR Capital Management LLC 1,206,035 (355,039) 0.498 12/31
Nomura Securities Co. Ltd. (P 1,204,900 (1,188,000) 0.498 12/31
Schroder Investment Management 1,191,032 1,191,032 0.492 12/31
BNP Paribas Arbitrage SNC 1,073,086 804,600 0.443 12/31
BlackRock Investment Managemen 1,066,628 (5,216) 0.440 12/31
First Trust Advisors LP 970,061 (131,229) 0.401 12/31
Bridgeway Capital Management 939,000 0 0.388 12/31
Susquehanna Financial Group LL 886,227 114,189 0.366 12/31
BNY Mellon Investment Adviser 836,542 (90,280) 0.345 12/31
Teachers Advisors LLC 831,195 1,758 0.343 12/31
Paulson & Co. Inc. 808,510 (202,290) 0.334 12/31
RhumbLine Advisers LP 802,787 24,824 0.331 12/31

13F data provided by: Factset Research Systems Inc.;
Please send questions to [e-mail].