QEP Resources Chops Expenses, Costs In Permian Basin, Bakken
The company reported this week earnings of $81 million, up from $7.3 million in the same quarter last year, and record Permian production.
Shale player QEP Resources Inc. continues to bring down costs across its assets as the company gears up for more refracs and gas lift in the Bakken along with a fourth-quarter 2019 return of frac crews to the Permian Basin.
The Denver-based company has lowered its G&A expenses by about 40% since third-quarter 2018, aiming to bring it down to less than $3 per barrel of oil equivalent (boe) by 2020.
QEP’s divestment of assets in the Haynesville/Cotton Valley Shale and Uinta Basin this year also helped drive a 41% drop in lease operating expense (LOE), which fell to $38.3 million for third-quarter 2019 compared to a year earlier. Divestitures aside, the company reported a $14.1 million drop in LOE attributable to expense-reduction efforts in the Permian and Williston basins.