QEP Resources, Inc. LTM PRO-FORMA * QEP Energy EBITDA $1.24 B - PowerPoint PPT Presentation

The Resource Growth Company QEP Resources, Inc.

LTM PRO-FORMA * QEP Energy EBITDA $1.24 B (Exploration & Production) 3.0 Tcfe proved reserves 15% 4-yr production CAGR QEP Field Services (Gathering and NGL extraction) 79% 1.37 Bcfpd processing 2,239 miles of gathering lines 20% QEP Marketing (Production marketing) Markets affiliate gas, oil and NGL‟s 1% Owns gas storage * LTM ending 2Q11 2 NYSE: QEP

Production growth per debt-adjusted diluted share (2006 – „10 CAGR) 49% 21% 13% 11% 11% 9% 8% 8% 8% 7% 7% 7% 6% 5% 4% 4% 3% 2% -1% -5% -6% -14% SWN UPL BBG QEP RRC WLL APC KWK EQT NBL EOG XEC COG SM PXD HK DVN NFX CHK BRY FST PXP Reserve growth per debt-adjusted diluted share (2006 – „10 CAGR) 43% 23% 20% 14% 13% 13% 13% 11% 10% 9% 7% 6% 6% 5% 4% 4% 3% 2% 1% -2% -3% -18% SWN BBG RRC UPL COG EQT QEP EOG NFX NBL DVN PXD XEC HK KWK BRY WLL SM CHK APC FST PXP Source: QEP Resources & ThomsonReuters Mar 2011 3 NYSE: QEP

2010 average production cash cost structure versus 44 E&P peers $8.00 (LOE + production taxes + G&A + interest) $6.00 QEP Energy $1.58/Mcfe $4.00 $2.00 Average $2.94/Mcfe $0.00 Source: Company data and Howard Weil, March 2011; includes allocated capitalized interest & G&A 4 NYSE: QEP

30% Avg Return on Capital Employed 2006-2010 (Cashflow from Operations / Gross PP&E) 25% QEP 20% Peer Average 15% 10% 5% 0% -20% -10% 0% 10% 20% 30% 40% 50% 60% Production Growth per Debt-Adjusted Diluted Share 2006-2010 Peer Group: APC, BBG, BRY, CHK, COG, DVN, EOG, EQT, FST, HK, KWK, NBL, NFX, PXD, PXP, RRC, SM, SWN, UPL, WLL, XEC 5 NYSE: QEP

2010 Reserves * 2009 YE Reserves * 3,031 Bcfe 2,747 Bcfe Pinedale Anticline Rockies: 1,860 Bcfe Bakken Uinta Basin Midcontinent: 1,171 Bcfe Northern Region 2009 Production 2010 Production 189.5 Bcfe 229 Bcfe Woodford Shale Southern Region Granite Rockies: 108.6 Bcfe Wash Haynesville Midcontinent: 120.4 Bcfe * Proved reserves prepared by independent reservoir engineering consultants as of 12/31/10 6 NYSE: QEP

Proved Reserves Net Production (Bcfe) (Bcfe/yr) 267* 3,031 2,747 229 190 2,218 171 1,868 140 1,631 130 * 2011 estimate: 265 - 269 Bcfe 7 NYSE: QEP

EBITDA ($MM/yr)  2011 guidance as of 7/26/11: 1,311 1,300* • EBITDA $1.275 B to $1.325 B 1,165 1,141 • 265 to 269 Bcfe production • Capital investment $1.3 B • Approximately 62% of remaining 2011 891 estimated production hedged 738 • Assumptions for unhedged production: • NYMEX gas price $4.00 to $4.50/MMBtu • NYMEX oil price $90 to $100/Bbl • Rockies basis: $0.50 to $0.30/MMBtu • Midcontinent basis: $0.30 to $0.15/MMBtu * midpoint of guidance 8 NYSE: QEP

Gas Liquids Liquids + fee-based revenues 11% 14% 17% 43% 89% 86% 83% 57% YE 10 Proved Total E&P-only Total Total Reserves Production* Production** Revenues** * Through 2Q11 ** Through 2Q11, E&P + Midstream 9 NYSE: QEP

$1.11 B $1.48 B $1.30 B 18% 10% 12% 7% 18% 13% 26% Field Services 5% 6% Other 8% 2% 5% 7% Bakken 11% Granite Wash 27% Cana 29% 28% Haynesville Pinedale 31% 19% 18% 2009 Capital 2010 Capital 2011 Capital Budget 10 NYSE: QEP

QEP net production TX LA (MMcfepd) 360 300 240 180 120 60 0 CV/Hosston Haynesville  Proved reserves 604 Bcf*  219 PUD locations*  1,200 additional potential locations on 80-acre density  Six operated rigs  $8.5 to $9.5 MM completed well cost  Average EUR 6 to 8 Bcf/well * As of December 31, 2010 QEP Leasehold Haynesville Tier I 6 Miles Haynesville Tier II Haynesville producing wells 6 Miles Haynesville drilling or WOC wells 11 NYSE: QEP

Average days spud to TD QEP-operated wells 66 37 32 Record 22 days 12 NYSE: QEP

Comparison of production rates from restricted vs. non-restricted rate wells 25000 20000 Gas Rate (mcfd) QEP – 4 well average cum. production 3.8 Bcf, average EUR 8.9 Bcf 15000 Operator A - 4 well average cum. production 3.3 Bcf, average EUR 6.3 Bcf 10000 Operator B - 4 well average cum. production 1.9 Bcf, average EUR 3.3 Bcf 5000 0 0 1 2 3 4 5 6 7 8 9 10 Cum Gas (Bcf) Comparison of average flowing pressures from the same well groups QEP - 4 well average 10000 Flowing Pressure (PSIG) Operator A - 4 well average 8000 Operator B - 4 well average 6000 4000 2000 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Cum Gas (Bcf) 13 NYSE: QEP

QEP net production QEP PDP well (MMcfepd) 240 Other operators 200 (No QEP interest) 160 QEP leasehold 120 80 1 Mile 40  Proved reserves 1.35 Tcfe*  432 PUD locations on a combination of 5,10, and 20-acre density *  Up to 1,300 remaining locations  103 well completions in 2010 Current  95-100 well completions in 2011 Economic Limit  Completed well costs below $3.8 MM  Four QEP operated rigs going to six by YE 2011 * As of December 31, 2010 14 NYSE: QEP

Average days spud to TD 64 61 45 42 35 28 23 17 13.8 Record 10.6 days 15 NYSE: QEP

QEP net production 50 (MMcfepd) 40 30 20 10 0  Proved reserves 199 Bcfe *  103 PUD locations * TIER II:  3,450 potential locations 27,477 net acres  20% average working interest in Tier I lands (operate 52% of potential investment) TIER I:  Three operated rigs 6 Miles 50,123 net acres  $8.0 to $9.5 MM completed well cost Value Driver:  EUR 4 to 12 Bcfe/well Predominately condensate and NGL QEP leasehold (Woodford or deeper) 18% of QEP net acres  Significant NGL (25 to 130 bbls/MMcf) Woodford wells completed Significant condensate and NGL 60% of QEP net acres Woodford wells drilling & WOC Dry gas * As of December 31, 2010 22% of QEP net acres 16 NYSE: QEP

Fort Berthold Detail Map QEP net production 4,000 (Boepd) 3,000 Parshall/Sanish Fields Fat Cat 2,000 (1 WOC,1 drilling) IP’s: 750 -3,000 Bopd 1,000 0 4-well pad (3 WOC, 1 drilling) Ft Berthold 2-well pad  5,000 to 10,000-ft laterals (drilling infill pilot)  $6.5 to $9.0 MM completed well cost 2-well pad PROPOSED  Proved reserves of 26.6 MMBoe* 10-well pad (2 WOC)  71 Bakken PUD locations on 640-acre spacing (1280-acre units)*  EUR 350 to 750 Mboe/well QEP IP: 1,374 Boepd Eastern edge ( Three Forks )  Three operated rigs being defined by drilling * As of Dec 31, 2010 QEP IP: 1,448 Boepd ( Three Forks ) 7/6/11 Bakken wells QEP IP avg. Boepd: TFS wells Long lateral: 1,530 QEP IP 2,650 BOEPD QEP producing wells (Bakken) 7/8/11 Short lateral: 998 Drilling Bailey Field Area IP’s: 500-1,000 Bopd 6 Miles 17 NYSE: QEP

QEP net production 50 (MMcfepd) 2 40 11 14 17 3 30 5 1 20 18 10 0 16 7 15  $8.0 to $9.0 MM completed well cost 10 12 13 6  EUR 4.0 to 7.0 Bcfe/well  26,705 net acres  Two operated rigs going to one in Q3 2011 8 4 9 After processing peak daily production rates: 1. Tom Puryear 5-28H: 19.4 MMcfepd 11. Franklin 46 #1H: wet 1 Mile 2. Edwards 1-56H: 13.7 MMcfepd 12. Moore 10W #3H: testing 3. Morrison 33 #5H: 23.0 MMcfepd 13. Moore 10W #4H: testing 4. Methodist Home 2 #5H: 15.9 MMcfepd 14. Morrison 6033H: 20.4 MMcfepd TEXAS OKLAHOMA 5. Huff 6-34H: 15.4 MMcfepd 15. Puryear 13 #7H: WOC 6. Moore 10 #2H: 11.3 MMcfepd 16. Puryear SL 8027H: WOC 7. Puryear 13 #8H: 15.7 MMcfepd 17. Huff SL 7034H: drilling 8. Barrett 11 #1H: 5.7 MMcfepd 18. Jolly 21 SL #3H: drilling 9. Simmons 9 #2H: 3.2 MMcfepd 10. Childrens Home 2 #4H: 16.4 MMcfepd QEP leasehold 18 NYSE: QEP

8 9 10 1 2 12 6 3 4 11 5 7 Texas Wash Oklahoma Wash 26,705 net acres 13,620 net acres 6 Miles Texas Key Wells IP‟s (all QEP operated) * Oklahoma Key Wells IP‟s ** 1 Morrison 33 #5H, 7-2010, 23.0 MMcfepd 1 1 Roxanne 2-17H (QEP), 10-2009, 660 BOPD, 5,456 MCFD 7 2 Huff 6-34H, 10-2010, 15.4 MMcfepd 2 2 Kephart 1-4H (non-QEP), 4-2011, 654 BOPD, 1,692 MCFD 8 3 Puryear 13 #8H, 12-2010, 15.7 MMcfepd 3 9 3 Dowell 1-31H (non-QEP), 5-2010, 2,440 BOPD, 16,200 MCFD 4 Methodist Home 2 #5H, 8-2010, 15.9 MMcfepd 4 10 4 Thetford 4-23H (non-QEP), 9-2010, 2,043 BOPD, 3,865 MCFD 5 Moore 10 #2H, 12-2010, 11.3 MMcfepd 5 5 Wester 2-34H (non-QEP), 5-2010, 5 BOPD, 4,683 MCFD 11 6 Childrens Home 2 #4H, 3-2011, 16.4 MMcfepd 6 6 Stewart USA 2-15H (non-op), 3-2011, 910 BOPD, 6,903 MCFD 12 * Processed volume detail on slide 7 ** Wellhead rates 19 NYSE: QEP

Horizontal Sussex Oil Play IPs: 700-1500 Bopd QEP Drilling in 2011 Powder River: 55,000 net acres Recent Sussex IPs: 31-1H SHL-Fed Sussex IP: 895 Bopd 667, 768, 796, 1077, 1298, 1488 Bopd 41-15H Henry Fed Frontier IP: 987 Boepd D-J Basin: 82,600 net acres CHK Spillman Draw Niobrara 400 Bopd (first 57 days) 15-65-36-1H State Silo Field Niobrara Herrington Niobrara IP: 831 Bopd Farms 1H E. Green River: 10 MMBo 202 Boepd Silo State 17,000 net acres 67 Boepd QEP leasehold QEP Borie 16-4H Basins EOG - Hereford Field Niobrara Well Niobrara – 283 MBO P&A‟d Permits or Drilling through Dec 2010 Sussex 36-11-65 Moonshine Niobrara Niobrara Niobrara 16-11-9-60H State IP: 650 Bopd Frontier IP: 602 Bopd 36-44-8-62 Bob White EOG IP: 725 Bopd Recent Niobrara IPs: 20 NYSE: QEP 732, 730, 600, 1100 Bopd