QEP Resources To Pursue Separation Of Its Midstream Business - Quick Facts

(RTTNews) - QEP Resources, Inc. (QEP) announced a decision to pursue a separation of its midstream business, QEP Field Services Company, including the company's interest in QEP Midstream Partners, LP or QEPM, (QEPM).

QEP said the decision is a result of the Board's continuous review of strategic alternatives to maximize shareholder value that also led to the creation of QEPM earlier this year.

After careful review by the Board of Directors and management team with its financial advisors, the company concluded that the separation of QEP Field Services from QEP creates a number of significant advantages, each of which is expected to maximize shareholder value.

The Board has directed management to begin the necessary work of establishing QEP Field Services as a separate entity from QEP, including engaging a search firm to assist in recruitment of additional senior management with experience running a standalone midstream business. In addition, the Board has asked management to work with the company's financial and legal advisers to evaluate the shareholder value impact of various separation alternatives.

The company said that along with its advisors it is working diligently to determine the path that creates the most value for shareholders and the timing of the consummation of separation is dependent on the path ultimately chosen. The company expects to update shareholders on the progress of the separation during the first quarter of 2014.

Also, during the review, the company said it will continue to operate its business in the normal course and will fully support ongoing activities. While the company is committed to the separation of the QEP Field Services business, there can be no assurance that any transaction will ultimately be consummated.