QEP Resources Inc., Denver, has started a comprehensive review of strategic alternatives that could result in a merger or sale of the company or its assets and intends to engage in discussions with parties that have expressed interest, including Elliott Management Corp. The hedge fund manager made an unsolicited cash offer to buy QEP for $8.75/share in January.
Also, given the deterioration in commodity prices, QEP said that it was unlikely to meet conditions to close the $1.7-billion deal to sell its Willison basin assets to Vantage Acquisition Operating Co. LLC and the parties agreed to terminate the transaction (OGJ Online, Nov. 7, 2018). QEP will continue to operate and develop the assets consisting of more than 100,000 net acres currently producing 46,000 boe/d (67% oil, 83% liquids), including the company’s South Antelope and Fort Berthold leaseholds.
As the company has reduced its operational footprint over the last 12 months, QEP said it intends to reduce its general and administrative expense by about 45%, when comparing 2018 to 2020. Most of the reductions are expected to close in this year’s first half.
