QEP Press Release: To Spin Off Its Midstream Business, QEP Field Services; Sell Non-Core Upstream Assets

QEP Resources provides update:

• on strategic initiatives; 
• authorizes $500 mln share repurchase program; 
• initiates non-core E&P asset sales; 
• co to implement the separation of QEP Field Services into publicly-traded co and explore alternative strategic transactions (QEP)

Co announced that, after significant review including discussions with shareholders, its Board of Directors has approved a series of strategic initiatives designed to maximize the inherent value of the co's midstream business while focusing on its core upstream business. These initiatives include:

• increasing the upstream and midstream expertise on its Board of Directors;  
• preparing and filing documents to facilitate the separation of the midstream business, QEP Field Services co, from QEP Resources; 
• commencing the sale process of non-core Midcontinent upstream assets; and, 
• authorizing the return of capital to shareholders through a $500 million share repurchase program. 

The Board of Directors has authorized management to implement the separation of QEP Field Services, including the co's interest in QEP Midstream Partners (QEPM), from QEP Resources into a standalone public co.

 As previously announced, QEP plans to sell non-core E&P assets located in the Midcontinent during the first half of 2014. The co is working with an advisor to effectuate the sale of the assets in multiple packages, the first two of which, the Granite Wash and "Cana" Woodford packages, will be marketed beginning in mid-February. The co anticipates closing the asset sales by July.