QEP Resources Provides Update on Strategic Initiatives

  QEP Resources Provides Update on Strategic Initiatives

 Names two new Directors to Board and announces $500 million share repurchase
                                   program

Company to implement the separation of QEP Field Services into publicly-traded
            company and explore alternative strategic transactions

                      Initiates non-core E&P asset sales

Business Wire

DENVER -- January 30, 2014

QEP Resources Inc. (NYSE: QEP, “QEP” or the “Company”), today announced that,
after significant review including discussions with shareholders, its Board of
Directors has approved a series of strategic initiatives designed to maximize
the inherent value of the Company’s midstream business while focusing on its
core upstream business. These initiatives include:

  *Increasing the upstream and midstream expertise on its Board of Directors;
  *Preparing and filing documents to facilitate the separation of the
    midstream business, QEP Field Services Company, from QEP Resources;
  *Commencing the sale process of non-core Midcontinent upstream assets; and
  *Authorizing the return of capital to shareholders through a $500 million
    share repurchase program.

“After a thorough and ongoing analysis with our Board, management team and
financial and legal advisors, we firmly believe that, along with other steps
we have taken recently, these initiatives will unlock additional value for
shareholders,” said Chuck Stanley, Chairman, President and CEO of QEP. “We
believe the separation of our midstream business will result in two distinct
entities with experienced and incentivized leadership teams able to compete
more effectively in their respective markets.”

New QEP Resources Board Members

The QEP Resources Board appointed Robert F. Heinemann and Thomas C. O’Connor
to the Board, effective immediately.

Mr. Heinemann brings significant E&P expertise to QEP’s Board through his
experience as President, Chief Executive Officer and Director of Berry
Petroleum Company, where he developed and executed the company’s growth and
capital allocation strategies. During his nine years as CEO, Berry Petroleum
increased production from approximately 15,000 barrels of oil equivalent per
day (BOED) to over 40,000 BOED and increased total enterprise value from $375
million to approximately $4 billion, ultimately culminating in a sale of the
company. Mr. Heinemann will seek election for a three-year term at the
Company’s 2014 Annual Meeting. He will replace Keith Rattie, who is retiring
from the QEP Board.

Mr. O’Connor brings deep midstream expertise to the QEP Board through his
experience as Chairman and CEO of DCP Midstream, LLC (DCP) from 2007 to 2013.
DCP is one of the largest midstream companies in the United States. Mr.
O’Connor also served as Chairman of a publicly traded Master Limited
Partnership, DCP Midstream Partners, LP (NYSE:DPM). During his tenure, Mr.
O’Connor led DCP on the most aggressive growth plan in the company’s history,
including over $5 billion of construction and development projects. Mr.
O’Connor will seek election for a three-year term at the Company’s 2015 Annual
Meeting.

QEP’s Lead Director, Dr. M. W. Scoggins, commented on the changes to the
Company’s Board of Directors: “On behalf of the Board, our shareholders, and
our employees, I would like to thank Keith for his many years of dedicated and
valuable service. We welcome Bob and Tom to the Board and look forward to
benefitting from their extensive experience in both the E&P and midstream
sectors where each has a proven track record of delivering long-term
shareholder value through sound capital allocation strategies.”

QEP Field Services Separation

The Board of Directors has authorized management to implement the separation
of QEP Field Services Company, including the Company's interest in QEP
Midstream Partners, LP (“QEPM”, NYSE: QEPM), from QEP Resources into a
standalone public company. The Company is preparing the appropriate Securities
and Exchange Commission (SEC) filings for the definitive separation. In
connection with the contemplated separation of QEP Field Services, Korn/Ferry
International has been retained to assist in recruiting an executive
management team for the new midstream company.

Simultaneous with the preparation of these SEC filings, the Company and its
advisors will entertain and evaluate proposals for alternative transactions
for separating the midstream business. Following analysis of any such
proposals, the Board, in consultation with its advisors, will select the
alternative it believes maximizes value for shareholders. For background on
the decision to separate QEP Field Services from QEP Resources please see the
Company’s Form 8-K filed December 5, 2013.

E&P Divestiture Update

As previously announced, QEP plans to sell non-core E&P assets located in the
Midcontinent during the first half of 2014. The Company is working with an
advisor to effectuate the sale of the assets in multiple packages, the first
two of which, the Granite Wash and “Cana” Woodford packages, will be marketed
beginning in mid-February. The Company anticipates closing the asset sales by
July. In order to more accurately incorporate the impacts of these and
previously announced corporate initiatives, the Company now expects to issue
2014 guidance in conjunction with fourth quarter 2013 results on February 25,
2014.

Returning Capital to Shareholders

The QEP Board has authorized a common stock repurchase program for up to $500
million of common shares. The timing and amount of any QEP common share
purchases will depend upon a number of factors, including general market
conditions, the Company’s financial position and the estimated intrinsic value
of the Company’s shares. QEP currently has approximately 179 million common
shares outstanding and its total market capitalization is approximately $5.5
billion based on the closing price of the Company's stock on December 31,
2013.

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. All
statements that address expectations or projections about the future are
forward-looking statements. Forward-looking statements are not guarantees of
future performance and are based on certain assumptions and expectations of
future results which may not be realized. Forward-looking statements also
involve risks and uncertainties, many of which are beyond the Company’s
control. Actual results may differ materially from those included in the
forward-looking statements due to a number of factors, including, but not
limited to: the availability of capital; global geopolitical and macroeconomic
factors; general economic conditions, including interest rates; changes in
local, regional, national and global demand for natural gas, oil and NGL;
natural gas, NGL and oil prices; impact of new laws and regulations, including
regulations regarding the use of hydraulic fracture stimulation and the
implementation of the Dodd-Frank Act; elimination of federal income tax
deductions for oil and gas exploration and development; drilling results;
shortages of oilfield equipment, services and personnel; operating risks such
as unexpected drilling conditions; weather conditions; changes in maintenance
and construction costs and possible inflationary pressures; permitting delays;
the availability and cost of credit; outcome of contingencies such as legal
proceedings; inability to successfully integrate acquired assets; purchase
price adjustments relating to asset sales; risks relating to the securities
markets generally; the impact of adverse market conditions affecting the
Company's business; fluctuations in processing margins; unexpected changes in
costs for constructing, modifying or operating midstream facilities; lack of,
or disruptions in, adequate and reliable transportation for the Company's
products; limited access to capital or significantly higher cost of capital
related to illiquidity or uncertainty in the domestic or international
financial markets; inadequate supplies of water and/or lack of water disposal
sources; the implications of the JANA Partners, LLC share accumulations and
its proposals to the Company and the Company’s response to those proposals;
the impact of capital market and business conditions on the nature and timing
of a separation of QEP Field Services; the impact on QEP of such separation,
including the time and resources devoted to its execution and the consequences
of separation of the midstream assets from QEP; the impact of market
conditions and other circumstances affecting the timing, pricing and
likelihood of contemplated dispositions; the impact of market conditions and
other circumstances on the timing, pricing and extent of share repurchases or
distributions on shares; future opportunities that the Company’s board of
directors may determine present greater potential value to stockholders than
any contemplated transaction; 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, 2012. The Company undertakes no obligation to publicly
correct or update the forward-looking statements in this news release, in
other documents, or on its website to reflect future events or circumstances.
All such statements are expressly qualified by this cautionary statement.

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 the Rockies and the Williston Basin) and the
Southern Region (primarily Oklahoma, the Texas Panhandle, and Louisiana) of
the United States. QEP Resources also gathers, compresses, treats, processes
and stores natural gas. QEP Resources is the majority owner of QEP Midstream
Partners, LP (NYSE:QEPM) and owns 100% of the partnership’s general partner.
For more information, visit QEP Resources' website at: www.qepres.com.

Contact:

QEP Resources, Inc.
Investors:
Greg Bensen, 303-405-6665
Director, Investor Relations
or
Media:
Brent Rockwood, 303-672-6999
Director, Communications
 
Press spacebar to pause and continue. Press esc to stop.