ISI Group Reiterates Perform on QEP Resources

ISI Group maintains its Perform rating on QEP Resources QEP as the company maintains volume targets while cutting gas capex. ISI Group comments, "Along with 4Q11 results, QEP announced further cuts to Haynesville gas activity as it focuses on liquids in the Uinta Basin Mesa Verde, Anadarko Basin Cana and Williston Basin Bakken. Specifically, QEP is reducing 2012 E&P capex by 9% to $1.130-1.280B from $1.330 prior, while maintaining production guidance of 305-310 Bcfe (+11-13% yr/yr growth). The projected liquids mix for 2012 edges up to 21% from 20%. Despite improved cash flow per debt adjusted share growth post the capex cut, we continue to see limited asset scale at QEP." QEP closed at $34 on Wednesday.