NYSE:QEP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has QEP Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QEP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

QEP

1.5%

US Oil and Gas

1.0%

US Market


1 Year Return

-89.1%

QEP

-35.9%

US Oil and Gas

4.1%

US Market

Return vs Industry: QEP underperformed the US Oil and Gas industry which returned -35.9% over the past year.

Return vs Market: QEP underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

QEPIndustryMarket
7 Day2.9%1.5%1.0%
30 Day47.8%9.0%5.4%
90 Day-63.4%-19.8%-5.7%
1 Year-88.9%-89.1%-32.9%-35.9%6.5%4.1%
3 Year-91.9%-92.1%-31.4%-38.6%28.3%19.8%
5 Year-95.7%-95.8%-39.1%-48.8%52.2%35.0%

Price Volatility Vs. Market

How volatile is QEP Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is QEP Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QEP ($0.79) is trading below our estimate of fair value ($1.86)

Significantly Below Fair Value: QEP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QEP is good value based on its PE Ratio (0.5x) compared to the Oil and Gas industry average (9.5x).

PE vs Market: QEP is good value based on its PE Ratio (0.5x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: QEP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: QEP is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is QEP Resources forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-75.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QEP's earnings are forecast to decline over the next 3 years (-75.9% per year).

Earnings vs Market: QEP's earnings are forecast to decline over the next 3 years (-75.9% per year).

High Growth Earnings: QEP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: QEP's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: QEP's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QEP is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has QEP Resources performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QEP has high quality earnings.

Growing Profit Margin: QEP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: QEP has become profitable over the past 5 years, growing earnings by 14.8% per year.

Accelerating Growth: QEP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: QEP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-22.9%).


Return on Equity

High ROE: QEP's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is QEP Resources's financial position?


Financial Position Analysis

Short Term Liabilities: QEP's short term assets ($697.0M) exceed its short term liabilities ($642.9M).

Long Term Liabilities: QEP's short term assets ($697.0M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: QEP's debt to equity ratio (63.4%) is considered high.

Reducing Debt: QEP's debt to equity ratio has increased from 55.2% to 63.4% over the past 5 years.

Debt Coverage: QEP's debt is well covered by operating cash flow (33.4%).

Interest Coverage: QEP's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

What is QEP Resources's current dividend yield, its reliability and sustainability?

10.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QEP's dividend (10.08%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: QEP's dividend (10.08%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

Stable Dividend: QEP's dividend payments have been volatile in the past 10 years.

Growing Dividend: QEP's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.7%), QEP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QEP is not forecast to pay a dividend in 3 years.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Tim Cutt (59yo)

1.33yrs

Tenure

US$5,959,741

Compensation

Mr. Timothy J. Cutt, also known as Tim, BS (Petroleum Engineering) has been the Chief Executive Officer, President and a Director at QEP Resources, Inc. since January 15, 2019. Mr. Cutt was the Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD5.96M) is above average for companies of similar size in the US market ($USD1.42M).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Cutt
CEO, President & Director1.33yrsUS$5.96m0.47% $901.4k
Christopher Woosley
Executive VP8.33yrsUS$3.11m0.23% $440.4k
Joseph Redman
Vice President of Energy0.75yrUS$2.67m0.17% $332.6k
William Buese
CFO, VP & Treasurer0.33yrno data0.16% $313.0k
Alice Ley
VP, Controller & Chief Accounting Officer6.17yrsno data0.086% $165.2k
Jamie Cutler
Chief Information Officer & VP9.33yrsno datano data
William Kent
Director of Investor Relationsno datano datano data
R. Ruskauff
Vice President of Marketingno datano datano data
Lauren Baer
Vice President of Human Resources & Community Investments2.17yrsno datano data

2.2yrs

Average Tenure

47yo

Average Age

Experienced Management: QEP's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Cutt
CEO, President & Director1.33yrsUS$5.96m0.47% $901.4k
Joseph Jaggers
Independent Director0.58yrUS$62.50k0.050% $95.7k
Phillips Baker
Independent Director9.92yrsUS$265.00k0.012% $22.9k
Barth Whitham
Independent Director0.58yrUS$62.50kno data
Julie Dill
Independent Director7yrsUS$273.75k0.0023% $4.4k
Michael Minarovic
Independent Director3yrsUS$265.00k0.025% $47.6k
Mary Shafer-Malicki
Independent Chair of the Boardno dataUS$270.84kno data

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: QEP's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: QEP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

QEP Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QEP Resources, Inc.
  • Ticker: QEP
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$192.148m
  • Shares outstanding: 242.18m
  • Website: https://www.qepres.com

Number of Employees


Location

  • QEP Resources, Inc.
  • 1050 17th Street
  • Suite 800
  • Denver
  • Colorado
  • 80265
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QEPNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2010
Q8QDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2010

Biography

QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in Western Texas; and Williston Basin in North Dakota. As of December 31, 2019, it had estimated proved reserves of approximately 382.3 million barrels of oil equivalent. The company sells oil, condensate, gas, and natural gas liquids to refiners, marketers, midstream service providers, wholesale marketers, industrial users, local distribution companies, and utility and other companies. QEP Resources, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 14:24
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.