QEP Resources Announces Receipt of Alternative Minimum Tax Refund

Rhea-AI Summary

QEP Resources has announced the receipt of a $170.7 million alternative minimum tax credit refund, which includes $5.1 million in accrued interest. The company plans to utilize these funds to repay senior notes due in March 2021. Tim Cutt, President and CEO, highlighted the importance of this refund in achieving corporate goals of balance sheet de-leveraging and liquidity improvement. Despite challenging market conditions, QEP remains committed to protecting shareholder value.

Positive

• Received $170.7 million tax credit refund to improve liquidity.
• Funds intended for repayment of senior notes due in March 2021.
• CEO emphasizes commitment to de-levering balance sheet.

Negative

• None.

DENVER, Aug. 27, 2020 (GLOBE NEWSWIRE) -- QEP Resources, Inc. (NYSE: QEP) (QEP or the Company) today announced that it has received its expected alternative minimum tax credit refund of $170.7 million, which includes $5.1 million of accrued interest. The Company expects to use the proceeds from the refund towards the repayment of its senior notes due in March 2021.

"We are pleased to have received our tax refund ahead of our expected timeline," commented Tim Cutt, President and CEO of QEP. "The tax refund is another important step toward our corporate goal of organically de-levering our balance sheet and improving liquidity. As we continue to navigate through the challenging market conditions, we remain focused on protecting shareholder value over the long term," concluded Cutt.

About QEP Resources, Inc.

QEP Resources, Inc. (NYSE: QEP) is an independent crude oil and natural gas exploration and production company focused in two regions of the United States: the Southern Region (primarily in Texas) and the Northern Region (primarily in North Dakota). For more information, visit QEP's website at: www.qepres.com.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “anticipates,” “believes,” “forecasts,” “plans,” “estimates,” “expects,” “should,” “will” or other similar expressions. Such statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. These forward-looking statements include statements regarding, among other things, our expectations regarding the Company's ability to repay its senior notes due in March 2021 and our ability to organically de-lever our balance sheet, improve liquidity and protect shareholder value.  Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to: the length and severity of the recent outbreak of the COVID-19 virus and its impact on QEP’s business; changes in oil, gas and NGL prices; liquidity constraints, including those resulting from the cost or unavailability of financing due to debt and equity capital and credit market conditions, changes in QEP’s credit rating, QEP’s compliance with loan covenants, the increasing credit pressure on QEP’s industry or demands for cash collateral by counterparties to derivative and other contracts; market conditions; global geopolitical and macroeconomic factors; the activities of the Organization of Petroleum Exporting Countries and other oil producing countries such as Russia; general economic conditions, including interest rates; changes in local, regional, national and global demand for natural oil, gas and NGL; impact of new laws and regulations, including the use of hydraulic fracture stimulation; impact of U.S. dollar exchange rates on oil, gas and NGL prices; elimination of federal income tax deductions for oil and gas exploration and development; guidance for implementation of the Tax Cuts and Jobs Act; actual proceeds from asset sales; actions of activist shareholders; tariffs on products QEP uses in its operations or on the products QEP sells; drilling results; shortages of oilfield equipment, services and personnel; the availability of storage and refining capacity; operating risks such as unexpected drilling conditions; transportation constraints, including gas and crude oil pipeline takeaway capacity in the Permian Basin; weather conditions; changes in maintenance, service and construction costs; permitting delays; outcome of contingencies such as legal proceedings; inadequate supplies of water and/or lack of water disposal sources; credit worthiness of counterparties to agreements; and the other risks discussed in the Company’s periodic filings with the Securities and Exchange Commission, including the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as updated by the Risk Factors section of the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020. QEP Resources undertakes no obligation to publicly correct or update the forward-looking statements in this news release, in other documents, or on the website to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.

Contact

Investors/Media:

William I. Kent, IRC

Director, Investor Relations

303-405-6665

FAQ

What is the amount of the tax credit refund received by QEP?

QEP received a tax credit refund of $170.7 million.

How will QEP use the tax credit refund?

The refund will be used to repay senior notes due in March 2021.

Who is the CEO of QEP Resources?

Tim Cutt is the President and CEO of QEP Resources.

What does QEP focus on as a company?

QEP Resources focuses on crude oil and natural gas exploration and production.

When are QEP's senior notes due?

QEP's senior notes are due in March 2021.