Business Description
QEP Resources, Inc. (QEP or the Company), is an independent natural gas and
oil exploration and production company. QEP is a holding company with three
major lines of business – gas and oil exploration and production, midstream
field services, and energy marketing.
• QEP Energy Company (QEP Energy) acquires, explores for, develops and
produces natural gas, oil, and natural gas liquids (NGL);
• QEP Field Services Company (QEP Field Services) provides midstream
field services including natural gas gathering, processing and treating services
for affiliates and third parties; and
• QEP Marketing Company (QEP Marketing) markets equity and third-party
natural gas and oil, provides risk-management services, and owns and operates
an underground gas-storage reservoir.
QEP operates in the Rocky Mountain and Midcontinent regions of the United States
and is headquartered in Denver, Colorado. Principal offices are located in Denver,
Colorado; Salt Lake City, Utah; Oklahoma City, Oklahoma; and Tulsa, Oklahoma.
Competition and Customers: QEP Energy faces competition in every part of its
business, including the acquisition of producing properties and undeveloped
leasehold, the marketing of natural gas and oil, and obtaining goods, services
and labor. Its longer-term growth strategy depends, in part, on its ability
to acquire reasonably-priced acreage containing reserves and identify and develop
them in a low-cost and efficient manner.
QEP Energy, both directly and through QEP Marketing, sells natural gas production
to a variety of customers, including gas-marketing firms, industrial users and
local-distribution companies. QEP Energy regularly evaluates counterparty credit
and may require financial guarantees or prepayments from parties that fail to
meet its credit criteria.
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