QEP Resources Announces Agreements to Sell Non-Core E&P Assets for $807 Million

  QEP Resources Announces Agreements to Sell Non-Core E&P Assets for $807
  Million

Business Wire

DENVER -- May 6, 2014

QEP Resources, Inc. (“QEP” or the “Company”) (NYSE: QEP) today announced that
its wholly owned subsidiary, QEP Energy Company, has entered into three
definitive agreements to sell non-core oil and gas properties in the
Midcontinent and Williston Basin for a combined purchase price of
approximately $807 million, subject to customary purchase price adjustments
(the “Divestitures”).

Two of the agreements provide for the sale of oil and gas properties in the
Cana-Woodford and Granite Wash plays in the Western Anadarko Basin in Texas
and Oklahoma for a combined price of approximately $772 million (combined, the
“Midcontinent Divestitures”). The Midcontinent Divestitures are expected to
close on or before June 30, 2014, in each case subject to customary closing
conditions and purchase price adjustments. The Midcontinent Divestitures
contain an estimated 463 billion cubic feet equivalent of proved reserves as
of December 31, 2013 and current production of approximately 109 million cubic
feet equivalent per day (MMcfe/d) of which approximately 37% is liquids.

The third agreement provides for the sale of a non-core position in the
western Williston Basin, known as “Fat Cat,” for a price of approximately $35
million and is expected to close in early June.

These three sale transactions are structured as a reverse like-kind exchange
in which the tax basis of the divested assets is exchanged into the Company’s
recently acquired Permian Basin properties.

The Company is in the process of marketing its remaining Midcontinent assets,
primarily the South Central Oklahoma Oil Province (SCOOP) acreage and other
Arkoma and Anadarko Basin assets with current aggregate net production of
approximately 21 MMcfe/d.

BMO Capital Markets served as financial advisor to QEP in the Midcontinent
Divestitures, and Vinson & Elkins LLP provided legal counsel. Holland & Hart
LLP provided legal counsel for the Williston Basin divestiture.

About QEP Resources

QEP Resources, Inc. (NYSE: QEP) is a leading independent natural gas and crude
oil exploration and production company focused on two major regions: the
Northern Region (primarily the Rockies and the Williston Basin) and the
Southern Region (primarily Oklahoma, Texas, 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.

Cautionary 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. Such statements are based on management’s current expectations,
estimates and projections, which are subject to a wide range of uncertainties
and business risks. These forward-looking statements include statements
regarding the anticipated closing date of the Divestitures, estimated reserves
to be divested, estimated percentages of liquids and production associated
with the assets included in the Divestitures. Actual results may differ
materially from those included in the forward-looking statements due to a
number of factors including, without limitation, prices for natural gas, oil
and NGLs; availability of capital; disruptions of QEP’s ongoing business,
distraction of management and employees, increased expenses and adversely
affected results of operations from organizational modifications due to the
Divestitures; the inability of the parties to satisfy the conditions to the
consummation of the Divestitures; the impact of capital market and business
conditions on anticipated sales of various non-core assets in addition to the
Divestitures and on the nature and timing of the Divestitures; the impact on
QEP of such Divestitures, including the time and resources devoted to
execution and the consequences of the Divestitures; the assumption of
unidentified or unforeseeable liabilities from the Divestitures; drilling and
production costs; availability of drilling services and equipment; regulatory
and other approvals; recoveries of gas in place; actual drilling results;
lease expirations; general economic conditions, including the performance of
financial markets and interest rates, global geopolitical and macroeconomic
factors; weather conditions and other factors identified in the Risk Factors
section of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2013. QEP undertakes no obligation to publicly correct or update
the forward-looking statements in this release, in other documents, or on the
website to reflect future events or circumstances.

Contact:

QEP Resources, Inc.
Greg Bensen, 303-405-6665
Director, Investor Relations
or
Brent Rockwood, 303-672-6999
Director, Communications
 
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