By OGJ editors
HOUSTON, Apr. 21 -- Questar Corp., Salt Lake City, is considering a tax-free spinoff of the company’s gas and oil exploration and production business.
Questar said the new E&P entity would be made up of its Questar E&P Co., Questar Gas Management, and Questar Energy Trading subsidiaries.
After the spin-off, Questar Corp. would remain an integrated natural gas company comprised of subsidiaries Wexpro Co., Questar Pipeline, and Questar Gas Co. Keith O. Rattie, chairman, president, and chief executive officer, said corporate headquarters would remain in Salt Lake City.
“We’re evaluating whether now is the time to take that step,” said Rattie. “If consummated, we believe the spin-off would create two top-tier companies in their respective market segments.
“A separation of our high-growth E&P business from our regulated businesses may be a logical step in a long-term strategy that has served all Questar stakeholders well over the past decade,” he said.
Rattie said Questar has engaged financial and legal advisors to assist with the evaluation. Subject to certain precedent conditions and board approval, the spinoff transaction may occur in this year’s second half.