QEP Resources, Inc. (NYSE:QEP) Q2 2019 Earnings Conference Call Transcript

Aug 07, 2019 • 09:00 am ET

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QEP Resources, Inc. (NYSE:QEP) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings. Welcome to QEP Resources Second Quarter 2019 Conference Call.

[Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, William Kent, Director of Investor Relations. Thank you. You may begin.

Executive
William I. Kent

Thank you, David, and good morning, everyone. Thank you for joining us for the QEP Resources Second Quarter 2019 Results Conference Call.

With me today are Tim Cutt, President and Chief Executive Officer; and Richard Doleshek, Executive Vice President and Chief Financial Officer.

If you've not done so already, please go to our website, qepres.com, to obtain copies of our earnings release, which contains tables of our financial results along with the slide presentation with supporting materials.

In today's conference call, we'll use certain non-GAAP measures, including EBITDA, which is referred to as adjusted EBITDA in our earnings release and SEC filings, and free cash flow. These measures are reconciled to the most comparable GAAP measure in the earnings release and SEC filings. In addition, we'll be making numerous forward-looking statements. We remind everyone that our actual results could differ materially from our forward-looking statements for a variety of reasons, many of which are beyond our control. We refer everyone to our most -- more robust forward-looking statement disclaimer discussion of these risks facing our business in our earnings release and SEC filings.

With that, I'd like to turn the call over to Tim.

Executive
Timothy J. Cutt

Thank you, Will, and good morning and thank you for joining the call today.

I'll begin the call with an update to the strategic alternatives process before providing a brief operational update and a first look into our 2020 business plan. As you read in our second quarter earnings release this morning, we have concluded our comprehensive review of strategic alternatives, and the Board has determined the best value for shareholders is to move forward on a stand-alone basis. As you are likely aware, the current market conditions have significantly impacted the ability of many counterparties to transact at these levels that would deliver appropriate value for our shareholders.

While I will primarily focus today's commentary on our performance and go-forward strategy, I will first share a few remarks about the review process itself. Upon receiving an unsolicited proposal to acquire the company in January, we engaged in a review of a wide range of strategic alternatives in an effort to maximize value for shareholders. Without getting into granular detail, since we launched this strategic review process in February 2019, our Board of Directors met numerous times and with the help of a team of experienced financial and legal advisers reviewed a range of potential transactions. Ultimately, with today's market dynamics coupled with the strength of our operations, both in the Permian and the Williston Basins, our Board determined that the best path to create long-term value for shareholders is as a stand-alone company, executing our new strategic plan. As we evaluated opportunities, it was apparent that none of the potential transactions recognize the intrinsic value of