QEP Resources Inc.'s newly formed master limited partnership has filed for an initial public offering worth up to $400 million, the proceeds of which will be used to reimburse the general partner for capital expenditures and to pay down its debt.
In January, the natural-gas and crude-oil producer's board approved the formation of QEP Midstream Partners to spin off the majority of its gathering assets in Wyoming and North Dakota. QEP, which will own a 2% general partner interest in the partnership, had said it expected to raise $300 million to $400 million from selling a minority stake in the partnership.
QEP, previously Questar Corp.'s oil-and-gas exploration and midstream operations arm, was spun off from its former parent in 2010. The energy sector has been pressured by low natural gas prices recently.
Last month, QEP reported that it swung to a first-quarter loss after it recorded a large derivative gain in the year-ago period.
QEP Midstream intends to apply to list its common units on the New York Stock Exchange under the symbol "QEPM."
Shares of QEP Resources closed at $28.36 and were unchanged after hours. The stock is down 6.3% so far this year.
Copyright (c) 2012 Dow Jones & Company, Inc.
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