QEP Resources and Elliott Management Enter Into Cooperation Agreement
August 07 2019 - 7:05AM
QEP Resources, Inc. (NYSE:QEP) (QEP or the Company) today announced
that it has entered into a cooperation agreement with affiliates of
Elliott Management Corporation (“Elliott”). Funds affiliated with
Elliott beneficially own approximately 4.9% of the Company’s common
stock.
Board Enhancement
As part of the agreement and the ongoing refreshment of QEP’s
Board, the parties will work together to identify board nominees
and to agree upon two new independent directors to be appointed to
QEP's Board. The two new directors are expected to have
strong operating backgrounds in unconventional development and are
expected to be seated no later than October of this year.
Operations Committee
Additionally, QEP will create a new five-person Operations
Committee of the Board. The Operations Committee will be chaired by
QEP’s Chief Executive Officer, Tim Cutt, and will include two of
the current independent directors and, upon their appointment to
the QEP board, the two new independent directors. The
Operations Committee will work with QEP’s management team to
identify best practices in the areas of the Company’s operations
and focus on continuous operational improvement and excellence with
the objective to achieve leading levels of capital efficiency.
“In the last year, QEP has made strides in streamlining our
business, reducing costs, strengthening our balance sheet, and
selling non-core assets. Our Board and management team welcome the
constructive perspectives of our shareholders and are committed to
maximizing shareholder value. Through the formation of this new
committee, we will continue building on the progress we have
already made, and I look forward to the contributions of our new
directors and the new committee as we take further steps to improve
performance and build shareholder value,” said Cutt.
“I want to thank Tim and the rest of the Board of Directors for
the collaborative, constructive approach they have taken in
reaching today’s agreement,” said Elliott senior portfolio manager
John Pike. “Despite only being in the position for seven months,
Tim has led QEP toward significant improvements in its cost
structure and operating efficiency. We are confident
that the new additions to QEP’s Board and the newly formed
Operations Committee will lead to significant value creation for
all QEP stakeholders, and we are looking forward to remaining
engaged shareholders.”
Pursuant to the cooperation agreement, Elliott has agreed to
customary standstill, voting, and other provisions. The full
cooperation agreement between QEP and Elliott will be filed with
the Securities and Exchange Commission as an exhibit to QEP’s Form
10-Q for the second quarter 2019.
About QEP Resources
QEP Resources, Inc. (NYSE: QEP) is an independent crude oil
and natural gas exploration and production company focused in two
regions of the United States: the Southern Region (primarily
in Texas) and the Northern Region (primarily in North
Dakota). For more information, visit QEP's website
at: www.qepres.com.
About Elliot
Elliott Management Corporation manages two multi-strategy
investment funds which combined have approximately $38.2 billion of
assets under management. Its flagship fund, Elliott Associates,
L.P., was founded in 1977, making it one of the oldest funds under
continuous management. The Elliott funds’ investors include pension
plans, sovereign wealth funds, endowments, foundations,
funds-of-funds, high net worth individuals and families, and
employees of the firm.
Contact for
QEP |
William I. Kent, IRC |
303-405-6665 |
will.kent@qepres.com |
|
Contact for
Elliott |
Stephen Spruiell |
212-478-2017 |
sspruiell@elliottmgmt.com |
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