QEP Resources Inc. (NYSE:QEP) has reported that its wholly owned subsidiary, QEP Field Services Co. (QEPFS), has filed a registration statement on Form 10 with the US Securities and Exchange Commission (SEC) in connection with the spinoff of QEP’s midstream field services business into a separate publicly traded company.
Form 10 contains a preliminary information statement about the potential terms and conditions of a spin-off of QEPFS to QEP shareholders. It also provides initial information about QEPFS as a stand-alone business, including financial information, risk factors, and a discussion of the business strengths and strategies.
Immediately prior to the completion of the spin-off, QEPFS intends to change its name to Entrada Midstream Inc. In addition to owning natural gas gathering and processing assets, QEPFS owns the general partner of QEP Midstream Partners LP (NYSE:QEPM) and an approximate 55.8% limited partner interest in QEPM.
Concurrent with the preparation of Form 10, and as part of its previously announced strategic alternatives process, QEP is engaged in a process to solicit and evaluate proposals for alternative transactions for separating the midstream business. Following analysis of any such proposals, QEP will select the alternative that it believes creates the most value for its shareholders.
QEP Resources focuses in two major US regions: the Northern Region (primarily the Rockies and the Williston Basin), and the Southern Region (primarily Oklahoma, Texas, and Louisiana). QEP Resources also gathers, compresses, treats, processes, and stores natural gas. QEP Resources is the majority owner of QEP Midstream Partners and owns 100% of the partnership’s general partner.