QEP Resources to suspend dividend, cut capex by 50%-plus

|About: QEP Resources, Inc. (QEP)|By:, SA News Editor

QEP Resources (NYSE:QEP) says in its Q4 report that it is suspending its dividend in a bid to strengthen its liquidity, even while saying the impact on its cash position is relatively small.

QEP says it will reduce its 2016 capex by more than 50% Y/Y to $450M-$500M from $1.01B in 2015, which anticipates ramping down from nine operated rigs at year-end 2015 to 3-4 operated rigs for the remainder of the year, with one each on its Williston, Permian and Pinedale acreage.

QEP says it expects flat Y/Y crude oil production in 2016, citing efficiency gains, strong well performance and ongoing cost reduction initiatives.