DENVER--(BUSINESS WIRE)--Oct. 19, 2014--
QEP Resources, Inc. (NYSE:QEP, “QEP” or the “Company”) announced today
that its wholly owned subsidiary, QEP Field Services Company (“Field
Services”), has entered into a definitive agreement to sell its
midstream business, including the Company's ownership interest in QEP
Midstream Partners, LP (NYSE:QEPM, “QEPM”), to Tesoro Logistics LP in an
all cash transaction valued at $2.5 billion, including $230 million to
refinance debt at QEPM. QEP will retain ownership of Field Services’
Haynesville Gathering System.
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
assets,” commented Chuck Stanley, Chairman, President and CEO of QEP
“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 Rocky Mountains and
in northwest Louisiana. The sale of our midstream business is a
significant milestone in the strategic repositioning of our company, as
we believe QEP will be better positioned to deliver continued growth in
production and Adjusted EBITDA in 2015 and beyond.
“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.
Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as
financial advisors to QEP and Latham & Watkins LLP and Wachtell, Lipton,
Rosen and Katz are serving as legal advisors.
About QEP Resources
QEP Resources, Inc. (NYSE:QEP) is a leading independent natural gas and
crude oil exploration and production company focused in two major
regions: the Northern Region (primarily the Rockies and the Williston
Basin) and the Southern Region (primarily 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 (NYSE:QEPM) and owns 100% of the partnership’s
general partner. For more information, visit QEP Resources' website at: www.qepres.com.
Safe Harbor Statement Regarding Forward-Looking
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
Securities and Exchange Commission, including the Risk Factors section
of QEP’s Annual Report on Form 10-K for the year ended December 31,
2013. QEP undertakes no obligation to publicly correct or update the
forward-looking statements in this news release, in other documents, or
on the website to reflect future events or circumstances. All such
statements are expressly qualified by this cautionary statement.
Source: QEP Resources, Inc.
QEP Resources, Inc.