QEP Midstream Partners Closes Acquisition Of Membership Interests In Green
River Processing From QEP Resources For $230 Million
DENVER, July 1, 2014
DENVER, July 1, 2014 /PRNewswire/ --QEP Midstream Partners, LP (NYSE:QEPM)
(the "Partnership") today announced that it has acquired 40% of the
outstanding membership interest in Green River Processing, LLC ("Green River
Processing") for $230 million in cash from QEP Field Services Company, a
wholly owned subsidiary of QEP Resources, Inc. (NYSE: QEP) ("QEP"). This
transaction represents the Partnership's first acquisition following its
initial public offering in August 2013. The acquisition is expected to be
immediately accretive to the Partnership's distributable cash flow per unit.
The Partnership used cash on hand and proceeds from its $500 million credit
facility to fund the acquisition.
QEP Midstream Partners, LP logo
Green River Processing owns the Blacks Fork natural gas processing complex and
the Emigrant Trail natural gas processing plant located in southwest Wyoming.
These assets consist of four natural gas processing plants with total
processing capacity of 890 MMcf per day, and natural gas liquids ("NGLs")
fractionation capacity of 15,000 bbl per day with interconnects to six
interstate natural gas pipelines, and direct pipeline access to the Mt.
Belvieu and Conway NGL markets. In 2013, total natural gas inlet volumes for
Green River Processing were approximately 201 million MMBtu, of which 65% were
processed under fee-based processing agreements and 35% were processed under
keep-whole processing agreements.
The acquisition closed on July 1, 2014 with an effective date of July 1,
2014. The terms of the acquisition were approved by the Board of Directors of
the General Partner, based on the approval and recommendation of the Conflicts
Committee, which is comprised entirely of independent directors. The Conflicts
Committee was advised by Tudor, Pickering, Holt & Co. regarding financial
matters and Andrews Kurth LLP regarding legal matters.
About QEP Midstream Partners, LP
QEP Midstream Partners, LP is a master limited partnership formed by QEP
Resources, Inc. to own, operate, acquire and develop midstream assets. The
Partnership provides midstream gathering and processing services to QEP and
third-party companies in the Green River, Uinta and Williston basins.Further
information about the Partnership is available at www.qepm.com.
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. These forward-looking statements include statements regarding
the relative benefits to the parties and equity interest holders resulting
from the transaction and the operational and performance metrics of the Green
River Processing assets. Such statements are based on management's current
expectations, estimates and projections, which are subject to a wide range of
uncertainties and business risks. Actual results may differ materially from
those included in the forward-looking statements due to a number of factors,
including the price of natural gas, oil and NGLs, the inability of the parties
to satisfy the conditions to the transaction, disruptions of any party's
ongoing business, weather conditions, global geopolitical and macroeconomic
factors, the U.S. federal budget, acts of terrorism, and the other risks
discussed in the Partnership's filings with the Securities and Exchange
Commission, including the Risk Factors section of the Partnership's Annual
Report on Form 10-K for the year ended December 31, 2013. The Partnership
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.
QEP Midstream Partners, LP
Greg Bensen Brent Rockwood
Director, Investor Relations Director, Communications
SOURCE QEP Midstream Partners, LP
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