QEP

QEP Resources Inc

Energy


Presented:01/15/2019
Price:$8.76
Cap:$2.07B
Current Price:$4.08
Cap:$0.97B

Presented

Date01/15/2019
Price$8.76
Market Cap$2.07B
Ent Value$5.14B
P/E RatioN/A
Book Value$14.25
Div Yield0%
Shares O/S236.77M
Ave Daily Vol7,255,610
Short Int12.08%

Current

Price$4.08
Market Cap$0.97B
QEP Resources, Inc. is a holding company, which engages in the exploration and production of oil and natural gas properties. It focuses in the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana) geographical regions. The company was founded in 1922 and is headquartered in Denver, CO.

Publicly traded companies mentioned herein: Chevron Corp (CVX), Concho Resources Inc (CXO), Diamondback Energy Inc (FANG), Endeavor Energy Resources (private with public debt), Evercore Inc (EVR), Exxon Mobil Corp (XOM), Pioneer Natural Resources Co (PXD), QEP Resources Inc (QEP), Royal Dutch Shell PLC (RDS)

Highlights

The presenter is long shares of QEP Resources Inc (QEP), noting his confidence in the likelihood and price of an acquisition near-term. Hedge fund Elliott Management currently has a 5% stake in QEP, and it was reported in early January (2019) that it offered to buy the company for $8.75/share (~$2B). With the stock currently trading at ~$8.50, the risk/reward is appears to be skewed to the upside. Based on a variety of valuation approaches, it can be argued that the fair value of QEP’s stock is in the $10 - $14 range.

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Idea Discussion

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