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|QEP Resources Announces Sale of Its Midstream Business to Tesoro Logistics LP for $2.5 Billion|
The decision to sell the midstream business is a result of the Company’s ongoing review of strategic alternatives to maximize shareholder value. After careful consideration of various potential transaction alternatives, QEP’s Board of Directors, in consultation with its financial advisors, unanimously determined that the outright sale of the midstream business for cash is the best course to achieve the highest value for QEP shareholders.
“This transaction allows us to maximize shareholder value by deploying
proceeds from the sale through multiple avenues, including returning
capital to shareholders, reducing debt, and improving our competitive
position through increased capital investment in our premier E&P
“Post-closing, QEP will emerge as a more competitive and financially
strong independent E&P company with assets in two of North America’s
most prolific crude oil provinces, the Williston and Permian Basins, and
low-cost, high quality natural gas properties in the
“We also expect this transaction will provide expanded opportunities for our talented midstream employees, to whom I want to express my sincere appreciation for their outstanding work and extraordinary dedication to building QEP’s midstream business over the past two decades.”
The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close before year-end 2014.
Safe Harbor Statement Regarding Forward-Looking Statements
This release includes forward-looking statements within the meaning of
Section 27(a) of the Securities Act of 1933, as amended, and Section
21(e) of the Securities Exchange Act of 1934, as amended.
Forward-looking statements can be identified by words such as
“anticipates,” “believes,” “forecasts,” “plans,” “estimates,” “expects,”
“should,” “will” or other similar expressions. Such statements are based
on management’s current expectations, estimates and projections, which
are subject to a wide range of uncertainties and business risks. These
forward-looking statements include statements regarding QEP’s ability to
complete the sale of its midstream business, including its interest in
QEPM, the return of capital to QEP’s stockholders and the expected
growth in production and EBITDA. Actual results may differ materially
from those included in the forward-looking statements due to a number of
factors, including global geopolitical and macroeconomic factors, acts
of terrorism, and the other risks discussed in QEP’s filings with the
QEP Resources, Inc.
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