QEP Resources Shares Dip on $600 Investment in Permian Basin

Shares of QEP (QEP) - Get Report Resources took a hit on Wednesday after the company said it plans to spend about $600 million to acquire about 9,400 in new acreage in Texas's Permian Basin. Shareholders appear to doubt the CEO's statement that the acquisition will meaningfully add to QEP drilling inventory in order to capitalize on stabilizing prices for crude oil. QEP shares have taken a big hit by the sustained drop in crude prices over the past year. in 2015, shares were down 33 percent. But so far this year, as oil has climbed back to $50 a barrel, QEP shares are up 44 percent.

This article was written by a staff member of TheStreet.