QEP Resources sells assets in Wyoming for $777.5M
QEP Resources announced 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 $777.5M, subject to customary purchase price adjustments. 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 $740.0M to Pinedale Energy Partners, an affiliate of Oak Ridge Natural Resources. 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 $45.0M. The transaction is subject to closing conditions, including regulatory approval, and is expected to close by September 30. 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. The purchase price was $37.5M. The divestiture includes an estimated 15.2 Bcfe of proved reserves as of December 31, 2016, and net production in Q1 of 2017 was approximately 4 MMcfed, of which approximately 2% was liquids.