QEP Resources Announces Closing of Sale of Northwest Louisiana Natural Gas Assets
January 10 2019 - 4:05PM
QEP Resources, Inc. (NYSE: QEP) (“QEP” or the “Company”) announced
today that the sale of its natural gas and oil producing
properties, undeveloped acreage and associated gas gathering and
treating systems in the Haynesville/Cotton Valley has closed. As
part of this transaction, Aethon III, an affiliate of Aethon Energy
(the “Buyer”), assumed all firm gas transportation agreements
related to these assets. In addition, QEP novated to the Buyer
natural gas derivative contracts covering approximately 40 Bcf of
gas for the last eleven months of 2019.
The Company intends to use the proceeds from the divestiture to
repay the outstanding balance on its revolving credit facility and
to help fund a portion of its 2019 capital expenditure program.
About QEP Resources
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 Southern Region (primarily
Texas) and the Northern Region (primarily North Dakota). For more
information, visit QEP's website at: www.qepres.com.
About Aethon Energy
Aethon Energy Management LLC is a Dallas-based private
investment firm formed in 1990 that has managed and operated over
$2.5 billion of assets, and is focused on direct investments in
North American onshore oil & gas. Aethon III is an
investment vehicle formed to acquire onshore assets in North
America in partnership with the Ontario Teachers’ Pension Plan and
Redbird Capital Partners. For more information, go to
www.AethonEnergy.com.
Forward-Looking StatementsThis 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.
Actual results may differ materially from those included in the
forward-looking statements due to a number of factors, including,
but not limited to: (i) the occurrence of any event, change or
other circumstance that could delay the closing of previously
announced divestitures or give rise to the termination of the
agreements related thereto; (ii) changes in applicable laws or
regulations; and (iii) the possibility that QEP may be adversely
affected by other economic, business and/or competitive factors;
(iv) 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, and Quarterly
Reports on Form 10-Q filed in 2018. 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.
Investor and Media Contact for QEP
William Kent, IRC303-405-6665will.kent@qepres.com
Media Contacts for Aethon Energy
Prosek PartnersNick Rust or Meredith Mitchell 212-279-3115
nrust@prosek.com / mmitchell@prosek.com
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