QEP Resources Announces Agreement to Sell Uinta Basin Assets for $155 Million
July 10 2018 - 8:00AM
QEP Resources, Inc. (NYSE:QEP) (“QEP” or the “Company”) announced
today that its wholly owned subsidiary, QEP Energy Company, has
entered into a definitive agreement to sell natural gas and oil
producing properties, undeveloped acreage and related assets
located in the Uinta Basin for proceeds of $155 million, subject to
customary purchase price adjustments (the “Divestiture”).
The agreement provides for the sale of QEP’s assets
located in Duchesne and Uintah counties in eastern Utah to Middle
Fork Energy Partners, LLC. The Divestiture includes an estimated
605 Bcfe of proved reserves as of December 31, 2017, and net
production in the first quarter of 2018 was 54 MMcfed, of which
approximately 23% was liquids.
Citigroup Global Markets Inc. served as financial advisor and
Latham & Watkins LLP provided legal counsel to QEP.
Porter Hedges LLP provided legal counsel to Middle Fork Energy
Partners, LLC.
About QEP Resources, Inc.
QEP Resources, Inc. (NYSE:QEP) is an independent crude oil and
natural gas exploration and production company with operations in
two regions of the United States: the Northern Region (primarily in
North Dakota) and the Southern Region (primarily in Texas and
Louisiana). For more information, visit QEP's website at:
www.qepres.com.
About Middle Fork Energy Partners, LLC.
Middle Fork Energy Partners, LLC is a Denver, CO, based company
that is focused on the acquisition and development of crude oil and
natural gas properties in the Rocky Mountain Region. For more
information, visit Middle Fork’s website at:
www.middleforkep.com.
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: planned strategic initiatives;
planned asset divestitures and timing of such divestitures; and use
of proceeds from sale of assets. Actual results may differ
materially from those included in the forward-looking statements
due to a number of factors, including, but not limited to: timing
and amount of asset divestitures; changes in oil, gas and NGL
prices; liquidity constraints, including those resulting from the
cost or unavailability of financing due to debt and equity capital
and credit market conditions, changes in QEP’s credit rating, QEP’s
compliance with loan covenants, the increasing credit pressure on
QEP’s industry or demands for cash collateral by counterparties to
derivative and other contracts; market conditions; global
geopolitical and macroeconomic factors; the activities of
the Organization of Petroleum Exporting Countries; general
economic conditions, including interest rates; changes in local,
regional, national and global demand for natural oil, gas and NGL;
impact of new laws and regulations, including the use of hydraulic
fracture stimulation; impact of U.S. dollar exchange rates on oil,
gas and NGL prices; elimination of federal income tax deductions
for oil and gas exploration and development; guidance for
implementation of the Tax Cuts and Jobs Act; actual proceeds from
asset sales; actions of activist shareholders; tariffs on products
QEP uses in its operations or sells; drilling results; shortages of
oilfield equipment, services and personnel; the availability of
storage and refining capacity; operating risks such as unexpected
drilling conditions; transportation constraints; weather
conditions; changes in maintenance, service and construction costs;
permitting delays; outcome of contingencies such as legal
proceedings; inadequate supplies of water and/or lack of water
disposal sources; and the other risks discussed in the Company’s
periodic 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, 2017. 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.
Contact
Investors/Media:William Kent, IRCDirector, Investor
Relations303-405-6665
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