Domestic energy explorer,
QEP Resources Inc.
) announced a string of strategic initiatives to be undertaken by
the company to enhance the value of its business.
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Among the measures, the board authorized the spin-off of its
midstream business, QEP Field Services Company, in addition to
the separation of the company's interest in the master-limited
QEP Midstream Partners LP
). QEP Resources is arranging the necessary documents to
establish its midstream business as a standalone public company.
QEP Resources provided an update on the previously announced
non-core Midcontinent upstream asset sale. The company plans to
offer Granite Wash and Cana Woodford for sale by the middle of
Feb, with the expectation to close the deal by July. QEP
Resources also stated that it would release its guidance for 2014
in concurrence with its fourth-quarter results on Feb 25, 2014,
taking into consideration the impact of the recent activities.
Additionally, the company declared a share repurchase program
worth $500 million. With about 179 million common shares
outstanding, QEP Resources has a market capitalization of about
$5.5 billion (as of Dec 31, 2013).
Alongside, the company announced the addition of two new members
to the board - Robert F. Heinemann and Thomas C. O'Connor.
Following the announcement of the strategic measures, QEP shares
rose to an intraday high of $32.32 per share, before settling at
$31.29 on Jan 30, up from the previous day close of $30.99.
QEP Resources came into existence following the 2010 spin-off of
) oil and gas exploration and production business. The company
currently carries a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can consider other stocks from the same industry
Athlon Energy Inc.
). The stock currently sports a Zacks Rank #1 (Strong Buy).