DENVER--(BUSINESS WIRE)--May 7, 2014--
QEP Resources, Inc. (NYSE: QEP) (“QEP” or the “Company”) today announced
that it has entered into a Purchase and Sale Agreement with QEP
Midstream Partners, LP (NYSE:QEPM) (the “Partnership”) pursuant to which
the Partnership will acquire 40% of the outstanding membership interest
in Green River Processing, LLC (“Green River Processing”), a wholly
owned subsidiary of QEP, for $230 million in cash. The transaction is
expected to close on or about July 1, 2014, subject to customary closing
At closing, Green River Processing will own the Blacks Fork processing
complex and the Emigrant Trail processing plant located in southwest
Wyoming. Green River Processing will own four processing plants with
total processing capacity of up to 890 MMcf per day, natural gas liquids
(“NGLs”) fractionation capacity of 15,000 bbl per day, interconnects to
six interstate natural gas pipelines, and direct pipeline access to the
Mt. Belvieu and Conway NGL markets. In 2013, total inlet volumes for
Green River Processing were approximately 201 million MMBtu, of which
65% were processed under fee-based processing agreements and 35% were
processed under keep-whole processing agreements.
The Blacks Fork complex contains three processing plants with up to 505
MMcf per day of cryogenic processing capacity and a 330 MMcf per day
Joule-Thomson processing plant. In addition, the complex has 15,000 bbl
per day of fractionation capacity and associated truck and rail loading
facilities, which allow Green River Processing to sell purity products
into what are often premium priced local and regional NGL markets. The
majority of gas processed at the Blacks Forks complex is produced in the
Pinedale Anticline, which is approximately 100 miles north of the
The Emigrant Trail processing plant, located approximately ten miles
south of the Blacks Fork complex, consists of one cryogenic gas
processing train with inlet capacity of approximately 55 MMcf per day.
The plant receives the majority of its gas from various gas fields along
the Moxa Arch, including Church Buttes, located in the Green River Basin
of western Wyoming. The inlets of the Emigrant Trail plant and the
Blacks Fork Complex are interconnected, allowing raw gas to be processed
at either or both facilities.
About QEP Resources, Inc.
QEP Resources, Inc. is a leading independent natural gas and crude oil
exploration and production company focused on two major regions: the
Northern Region (primarily the Rockies and the Williston Basin) and the
Southern Region (primarily Oklahoma, Texas and Louisiana) of the United
States. QEP Resources also gathers, compresses, treats, processes and
stores natural gas. QEP Resources is the majority owner of QEP Midstream
Partners, LP and owns 100% of the Partnership’s general partner. Further
information about QEP is available at www.qepres.com.
About QEP Midstream Partners, LP
QEP Midstream Partners, LP is a master limited partnership formed by QEP
Resources, Inc. to own, operate, acquire and develop midstream assets.
The Partnership provides midstream gathering services to QEP and
third-party companies in the Green River, Uinta and Williston basins.
Further information about the Partnership is available at www.qepm.com.
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. These forward-looking
statements include statements regarding the anticipated closing date of
the transactions, the relative benefits to the parties and equity
interest holders resulting from the transaction, and the operational and
performance metrics of the Green River Processing assets. Such
statements are based on management’s current expectations, estimates and
projections, which are subject to a wide range of uncertainties and
business risks. Actual results may differ materially from those included
in the forward-looking statements due to a number of factors, including
the price of natural gas, oil and NGLs, the inability of the parties to
satisfy the conditions to the transaction, disruptions of any party’s
ongoing business, weather conditions, global geopolitical and
macroeconomic factors, the U.S. federal budget, acts of terrorism, and
the other risks discussed in the Company’s filings with the Securities
and Exchange Commission, including the Risk Factors section of the
Company’s Annual Report on Form 10-K for the year ended December 31,
2013. The Company undertakes no obligation to publicly correct or update
the forward-looking statements in this news release, in other documents,
or on its website to reflect future events or circumstances. All such
statements are expressly qualified by this cautionary statement.
Source: QEP Resources, Inc.
QEP Resources, Inc.
Greg Bensen, 303-405-6665
Brent Rockwood, 303-672-6999