QEP Resources Announces Plan to Form Midstream Master Limited Partnership

  QEP Resources Announces Plan to Form Midstream Master Limited Partnership

Business Wire

DENVER -- January 7, 2013

QEP Resources, Inc. (NYSE: QEP)(“QEP” or the “Company”) announced today that
while it continues to evaluate strategic alternatives to enhance shareholder
value with respect to certain of its midstream assets, QEP’s board of
directors has authorized the formation of a master limited partnership (MLP)
and the preparation and filing of a registration statement with the U.S.
Securities and Exchange Commission (SEC) for an initial public offering (IPO)
of common units of the MLP. The Company expects to file a registration
statement with the SEC in the second quarter of 2013.

The MLP is intended to support the growth of QEP’s midstream business and is
consistent with the Company’s focus on maximizing shareholder value and
maintaining balance sheet strength. The Company expects to initially
contribute a majority of its gathering assets in Wyoming and North Dakota to
the MLP. Subject to final board approval and market conditions, QEP expects to
sell a minority interest in the MLP in the IPO and raise $300 million to $400
million in gross proceeds. Proceeds from the offering would be used to fund
ongoing operations, to repay debt under the Company’s revolving credit
facility and for general corporate purposes. Additional detail will be
included in the registration statement.

There can be no assurance that there will be an initial public offering of the
MLP or any other transaction. This announcement is made in accordance with
Rule 135 of the Securities Act of 1933, as amended. As required by Rule 135,
this press release does not constitute an offer to sell or the solicitation of
an offer to buy securities, and shall not constitute an offer, solicitation or
sale in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
that jurisdiction.

Some of the statements included in this press release constitute “forward
looking statements” (as defined in Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934, as
amended). Such forward-looking statements are based on management’s beliefs
and assumptions and on information currently available. You should not put
undue reliance on any forward-looking statements. Forward-looking statements
include all statements that are not historical facts and may be identified by
the use of forward looking terminology such as the words “believe,” “expect,”
“plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,”
“continue,” “may,” “will,” “should” or the negative of these terms or similar
expressions. Forward-looking statements involve risks, uncertainties and
assumptions.

Risks and uncertainties that could cause actual results to differ materially
from those expressed in forward-looking statements include economic, business,
competitive and/or regulatory factors affecting the Company’s business, as
well as uncertainties related to the outcomes of pending or future litigation,
legislation, or regulatory actions. Among such risks are: changes in timing
and structure of the planned MLP; unanticipated developments that may delay or
negatively impact the planned MLP; regulatory approvals and compliance with
contractual obligations; impact of the planned MLP on the Company’s
relationships with its employees, customers and vendors and the Company’s
credit rating and cost of funds; changes in market conditions; and future
opportunities that the Company’s board of directors may determine present
greater potential value to stockholders than the planned MLP. No assurance can
be given as to the value of the common units of the planned MLP, the price at
which they may trade or whether a liquid market may develop for such units.
Unpredictable or unknown factors not discussed in this release also could have
material adverse effects on forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, QEP has included in its filings with the
Securities and Exchange Commission cautionary language identifying important
factors (but not necessarily all the important factors) that could cause
actual results to differ materially from those expressed in any
forward-looking statement made by QEP. For more information concerning these
factors, see QEP’s Securities and Exchange Commission filings. All
forward-looking statements included in this press release are expressly
qualified in their entirety by such cautionary statements. QEP does not have
any intention or obligation to update any forward-looking statement (or its
associated cautionary language), whether as a result of new information or
future events, after the date of this press release, except as required by
applicable law.

About QEP Resources

QEP Resources, Inc. (NYSE: QEP) is a leading independent natural gas and crude
oil exploration and production company focused in two major regions: the
Northern Region (primarily in the Rockies and the Williston Basin) and the
Southern Region (primarily Oklahoma, Louisiana, and the Texas Panhandle) of
the United States. QEP Resources also gathers, compresses, treats, processes
and stores natural gas. For more information, visit QEP Resources’ website at:
www.qepres.com.

Contact:

Investors:
QEP Resources, Inc.
Greg Bensen
Director, Investor Relations
303-405-6665
 
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