DENVER, July 24, 2017 (GLOBE NEWSWIRE) -- QEP Resources, Inc. (NYSE:QEP) (“QEP” or the “Company”) announced
today that its wholly owned subsidiary, QEP Energy Company, has entered into two definitive agreements to sell natural gas assets
in southwest Wyoming for combined proceeds of $777.5 million, subject to customary purchase price adjustments (the “Divestitures”).
"Our Wyoming assets have been significant contributors to the company for many years and were critical to our early success,”
commented Chuck Stanley, Chairman, President and CEO of QEP. “As we continue to evolve as a company, these transactions are a
necessary next step in simplifying our asset portfolio and delivering significant financial proceeds that will further strengthen
our balance sheet and help fund future development projects and acquisition opportunities.”
The first agreement provides for the sale of all of QEP’s assets in the Pinedale Anticline field in Sublette County, Wyoming,
for a purchase price of $740.0 million (“Pinedale Divestiture”) to Pinedale Energy Partners, LLC, an affiliate of Oak Ridge Natural
Resources, LLC. The Pinedale Divestiture includes an estimated 964 Bcfe of proved reserves as of December 31, 2016, and net
production in the first quarter of 2017 was 234 MMcfed, of which approximately 12% was liquids. As part of the Pinedale
Divestiture, QEP has agreed to reimburse the buyer for certain deficiency charges it incurs related to gas processing and NGL
transportation and fractionation contracts, if any, between the effective date of the sale and December 31, 2019, in an aggregate
amount not to exceed $45.0 million. The transaction is subject to closing conditions, including regulatory approval, and is
expected to close by September 30, 2017.
BMO Capital Markets served as financial advisor and Vinson & Elkins LLP provided legal counsel to QEP. Wells Fargo
Securities, LLC served as financial advisor and Baker Botts L.L.P. provided legal counsel to Pinedale Energy Partners, LLC.
In a separate transaction, the Company closed the sale of certain non-core natural gas assets in southern Wyoming to an
undisclosed buyer on June 30, 2017. The purchase price was $37.5 million. The divestiture includes an estimated 15.2 Bcfe of proved
reserves as of December 31, 2016, and net production in the first quarter of 2017 was approximately 4 MMcfed, of which
approximately 2% was liquids.
About QEP Resources
QEP Resources, Inc. (NYSE:QEP) is an independent natural gas and crude oil exploration and production company
focused in two geographic regions: the Northern Region (primarily Wyoming, North Dakota and Utah) and the Southern Region
(primarily Texas and Louisiana) of the United States.
Forward-Looking Statements
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. Such
statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of
uncertainties and business risks. These forward-looking statements include, but are not limited to, statements regarding: the
benefits of the Divestitures, including the ability of the Divestitures to strengthen QEP’s balance sheet and fund future
development projects and acquisition opportunities; the estimated reserves to be divested; the estimated percentages of liquids and
production associated with the assets included in the Divestitures; and the timing of the closing of the Pinedale Divestiture.
Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including,
but not limited to: disruptions of QEP's ongoing business, distraction of management and employees, increased expenses and
adversely affected results of operations from organizational modifications due to the Divestitures; the inability of the parties to
satisfy the conditions to the consummation of the Divestitures, including regulatory approval of the Pinedale Divestiture; changes
in natural gas, NGL and oil prices; liquidity constraints, including those resulting from the cost or unavailability of financing
due to debt and equity capital and credit market conditions, changes in our credit rating, our compliance with loan covenants, the
increasing credit pressure on our industry or demands for cash collateral by counterparties to derivative and other contracts;
global geopolitical and macroeconomic factors; the activities of the Organization of Petroleum Exporting Countries (OPEC); the
impact of Brexit; general economic conditions, including interest rates; changes in local, regional, national and global demand for
natural gas, oil and NGL; changes in, adoption of and compliance with laws and regulations, including decisions and policies
concerning the environment, climate change, greenhouse gas or other emissions, natural resources, and fish and wildlife, hydraulic
fracturing, water use and drilling and completion techniques, as well as the risk of legal proceedings arising from such matters,
whether involving public or private claimants or regulatory investigative or enforcement measures; strength of the U.S. dollar;
elimination of federal income tax deductions for oil and gas exploration and development; drilling results; shortages of oilfield
equipment, services and personnel; the availability of storage and refining capacity; operating risks such as unexpected drilling
conditions; transportation constraints; weather conditions; changes in maintenance, service and construction costs; permitting
delays; outcome of contingencies such as legal proceedings; inadequate supplies of water and/or lack of water disposal sources; and
the other risks discussed in the Company’s periodic filings with the Securities and Exchange Commission, including the Risk Factors
section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and Quarterly Report on Form 10-Q
for the quarter ended March 31, 2017. QEP undertakes no obligation to publicly correct or update the forward-looking statements in
this news release, in other documents, or on the website to reflect future events or circumstances. All such statements are
expressly qualified by this cautionary statement.
Contact Investors: William Kent, IRC 303-405-6665 Media: Brent Rockwood 303-672-6999
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