By Ernest Scheyder
Nov 5 Oil producer QEP Resources Inc,
which is under pressure from activist investor Jana Partners
LLC, posted a lower-than-expected profit on Tuesday as a jump in
commodity prices failed to offset a dip in production.
For the third quarter, QEP reported net income of $37.3
million, or 21 cents per share, compared with a net loss of $3.1
million, or 2 cents per share, in the year-ago quarter.
Excluding losses on hedging and other one-time items, the
company earned 36 cents per share.
By that measure, analysts expected earnings of 39 cents per
share, according to Thomson Reuters I/B/E/S.
Total revenue rose 43 percent to $772.8 million. Analysts
expected revenue of $795.4 million.
Production fell 4 percent to 78 billion cubic feet
equivalent, with the biggest percentage drop in QEP's
Haynesville wells, which produce natural gas. QEP did see oil
production increase, especially in North Dakota's Bakken shale
Average prices for the company's natural gas, crude oil and
natural gas liquids jumped 31 percent, boosting results and
pointing to the company's strategy of focusing more on producing
lucrative crude oil.
"Our third quarter results demonstrate that QEP is making
steady progress on our strategic goal of growing high-margin
crude oil production, a trend we expect to continue as we head
into next year," QEP's chief executive, Chuck Stanley, said in a
Jana unveiled a 7.5 percent stake in QEP last month,
becoming the company's largest shareholder. QEP did not mention
the stake in its earnings statement on Tuesday afternoon. The
company plans to hold a conference call with investors on
Shares of QEP fell 5.4 percent to $31.50 in after-hours
trading. As of Tuesday's close, QEP shares were up nearly 10
percent so far this year, a jump that came mostly after Jana
unveiled its stake.