QEP Resources CFO sees silver lining for company in the downturn

By Lisa Kerner

Charlotte, N.C., Aug. 18 – QEP Resources, Inc. entered the industry downturn “in pretty strong financial condition,” said executive vice president and chief financial officer Richard Doleshek.

According to Doleshek, QEP will be a survivor in the challenging market, due in large part to the sale of assets totaling $3.3 billion at the end of 2014.

“The silver lining is that this commodity price environment has made us more efficient, costs have come down, we’re drilling the best wells that we’ve ever drilled, we’ve got a real stout balance sheet, and we’ve got almost $350 million of cash on our balance sheet at year end, (and) an unused $1.8 billion revolver that’s not subject to borrowing base redeterminations,” Doleshek said during a presentation on Tuesday at the EnerCom Oil & Gas Conference in Denver.

For the first six months of 2015, QEP’s well costs are down 30% and capital expenditures are down 28% from a year ago.

Currently, QEP has eight rigs running, down from a high of 21 last year, Doleshek said.

The company will spend close to $1 billion this year on four plays.

QEP is a natural gas and crude oil exploration and production company based in Denver.

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