QEP Resources to sell Wyoming natgas assets for about $740 MM

(Reuters) — QEP Resources Inc said it would sell its natural gas assets in Wyoming to privately held Pinedale Energy Partners LLC for about $740 MM, as the US oil and gas producer focuses on liquids-rich, higher-margin assets.

Like other oil and gas companies, QEP has been looking to increase exposure to low-cost drilling basins such as the Permian in West Texas, following a more than two-year slump in oil prices.

Denver, Colorado-based QEP said last year it would spend $600 MM to buy acreage in the prolific basin.

QEP said on Monday the assets being sold produced 234 MMcfd of natural gas in the Q1 2017, of which about 12% was liquids.

The deal is expected to close by Sept. 30, the company said.

In a separate transaction, QEP closed the sale of certain non-core natural gas assets in southern Wyoming for $37.5 MM.

BMO Capital Markets served as financial adviser and Vinson & Elkins LLP provided legal counsel to QEP.

Reporting by John Benny in Bengaluru; Editing by Sriraj Kalluvila

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}