Here's Why QEP Resources Inc.'s Stock Is Sinking Today
Shares of QEP Resources (NYSE: QEP) slumped on Tuesday and were down nearly 10% by 2:30 p.m. EDT. Driving the decline was the company's updated outlook for production, which it reduced after completing an asset sale and factoring in some pilot wells that missed the mark.
QEP Resources initially expected that it would produce between 57.2 million to 60.3 million barrels of oil equivalent (BOE) this year. However, the company recently closed the sale of its Pinedale assets in Wyoming, which will result in a lower contribution from those properties this year. That said, in addition to that lost output, the company also noted that a group of pilot wells completed in deeper parts of the Three Forks Formation had underperformed expectations. As a result, the company has modified its development plans going forward. Furthermore, the driller noted that it experienced some delays in the Permian Basin as a result of the continued evolution of its development methodology. As a result, QEP Resources now expects full-year output to be between 52.3 million to 54.1 million BOE.
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Source: Fool.com
