QEP Energy Company, a fully owned affiliate of domestic energy
QEP Resources Inc.
), has entered into an agreement with an undisclosed seller.
Per the contract, the subsidiary of QEP Resources will purchase
Permian Basin-based oil and gas assets for roughly $950.0
million. The company is expected to finance the transaction with
available cash and revolving credit facility. QEP Resources
anticipates to seal the deal by Jan 31, 2014.
QEP Resources reveals that the Permian basin assets span across
roughly 26,519 net acre and generate 6,700.0 barrels of oil
equivalent per day (Boepd). 68% of the total production is crude
oil. Moreover, the net proved reserve and the projected
recoverable reserve of the Permian Basin oil and gas properties
are 47.0 million barrels of oil equivalent (MMBoe) and 300.0
million MMBoe, respectively.
The above acquisition reflects the company's strong focus on
resource plays that generate crude oil and natural gas liquids.
Additionally, QEP Resources is planning to divest mid-continent
area based several non-core exploration and production properties
by the first half of 2014. The proceeds from the divestment are
expected to be invested in Williston and the Permian basins, two
leading oil resources. A part of the divestment profits will also
be spent on Pinedale Anticline and Uinta basin located Lower
QEP Resources, in its present form, 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 look at better-ranked players in the
exploration and production sectors like
Bonanza Creek Energy Inc.
Harvest Natural Resources Inc.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
BONANZA CREEK (BCEI): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
QEP RESOURCES (QEP): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
To read this article on Zacks.com click here.