QEP Announces Strategic Initiatives, Incl. Spinoff, $500 Mln Stock Buyback

(RTTNews) - QEP Resources Inc. (QEP) said Thursday 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.

As part of the initiatives, the QEP Resources Board has appointed Robert Heinemann and Thomas O'Connor to the Board, effective immediately.

The company's Board has also authorized management to implement the separation of QEP Field Services Company, including the company's interest in QEP Midstream Partners, LP (QEPM), from QEP Resources into a standalone public company. 

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.

Additionally, the QEP Board has authorized a common stock repurchase program for up to $500 million of common shares. QEP currently has about 179 million common shares outstanding.