UPDATE: Jefferies Downgrades QEP Resources to Hold on Ambiguous Upstream Value

Jefferies downgraded QEP Resources QEP from Buy to Hold and lowered the price target from $46.00 to $34.00. Jefferies commented, "Asset Value Buffeted By Lower Growth And Heavier NGL's. Downgrading QEP to Hold from Buy and reducing PT to $34 from $46. The company's pretax pv10 value was disappointing, buffeted by higher-than-expected NGL reserves and a pricey Bakken acquisition. QEP reported a pv10 of $4B on a $2.75/$94 deck. Adjusted for $4/$95, we estimate the number is closer to $5.7B. That works out to a per share value of $11-$12. (Haynesville reserves should remain off the books because drilling is unlikely to commence even if gas gets to $4.) We were expecting stronger reserve growth, both organically and acquired, and a higher oil component." QEP Resources closed at $29.98 on Wednesday.