QEP Resources (NYSE: QEP) released their first quarter 2018 financial and operating results. While production was up at some of the Denver-based company’s key holdings overall the company is reporting a net loss of US$53.6 million, a stark comparison to the US$76.9 million net income the company reported in the same time period last year.
As quoted in the press release:
“During the first quarter we delivered strong production growth in the Permian Basin, driven by the continued success of our ‘tank-style’ completions and operational efficiency gains in both drilling and completion activities. We accelerated the well delivery cadence in the Permian through faster drill times and a step-change in the number of frac stages completed each month by each of our two completion crews. As a direct result of these efficiencies, we were able to put 31 net wells on production during the quarter in the Permian Basin, compared to our original plan of 18 net wells. We now expect to complete and put on production nine more net wells than originally forecasted during 2018, resulting in an increase in Permian oil volumes and an associated increase in capital expenditures.
As we continue to focus on balancing capital investments and cash flow, we have reduced capital allocated to our Williston Basin and Haynesville/Cotton Valley assets for the remainder of 2018 to support additional investment in the Permian Basin. We have delineated and refined our tank-style completion methodology over the past year and are now in full development mode on our Permian assets, giving us confidence in our ability to deliver the results set forth in our revised guidance,” said Chuck Stanley, CEO, chairman and president of QEP.