QEP Resources To Buy Oil Assets In Texas For $950M
Dec 9 (Reuters) - QEP Resources Inc said it would buy oil assets in Texas' Permian Basin as it looks to transform itself into a pure-play exploration and production company, following pressure from activist investor Jana Partners.
The purchase of the oil and natural gas properties for about $950 million will add production of 6,700 barrels of oil equivalent per day (boepd), of which roughly 68 percent was crude oil, QEP said.
The deal was part of the company's strategy to become more focused on crude oil and natural gas liquids, Chief Executive Chuck Stanley said in a statement.
The company said last Monday that it planned to spin off its QEP Field Services division, as well as its 25 percent stake in QEP Midstream Partners LP.
Jana, QEP's largest shareholder, has pushed for QEP to separate its pipeline business, saying that it did not have the expertise to run the unit.
QEP said it would also sell some non-core assets located in the Mid-continent region during the first half of 2014.
The company now expects to focus its spending on its oil assets, the Permian basin and North Dakota's Williston Basin, besides its liquids-rich gas assets in the Uinta Basin in Utah.
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