Wednesday, June 16, 2010

Questar board approves spin-off of E&P, midstream field services Energy company

Questar Corp. on June 14 announced that its board has unanimously approved the tax-free spin-off of its natural gas and oil exploration and production as well as midstream field services businesses, forming an independent, publicly-traded company named QEP Resources, Inc.
The company noted that the spin-off will be structured as a pro-rata dividend of the common stock of subsidiary QEP Resources, with the distribution occurring on June 30, to Questar shareholders of record as of the close of business on June 18, 2010.
Questar shareholders will receive one share of QEP common stock for each share of Questar common stock.
In a statement last month, chairman, president and chief executive officer, Keith Rattie said, “QEP Resources would be a high-growth, diversified E&P business with operations in several of the most economic natural gas plays in the U.S. Questar would be a uniquely integrated natural gas company with a track record of solid returns on capital, visible growth, and the capacity to pay and grow a competitive dividend.”
Following the spin-off, Questar would remain an integrated natural gas-focused energy company, comprising of subsidiaries Wexpro Co., Questar Pipeline Co., and Questar Gas Co., with its corporate headquarters remaining in Salt Lake City.
The company said Questar common stock will continue to trade on the New York Stock Exchange under the symbol STR through the distribution date of June 30 and thereafter. Meanwhile, QEP Resources has applied to have its common stock listed on the NYSE under the symbol QEP, and is expected to begin trading on July 1.
The company had earlier revealed that Rattie would serve as the chairman of the board of both companies after completion of the spin-off. The company also named Charles Stanley as the president and chief executive officer, and Richard Doleshek as the chief Financial Officer of QEP Resources. Meanwhile, Ronald Jibson would be named president and chief executive officer, and Martin Craven would be named chief financial officer of Questar.

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