[Context: On January 10, Aethon Energy closed its acquisition of Haynesville/Cotton Valley assets form QEP Resources (NYSE: QEP) through a new affiliate Aethon III. Further details and related links are below.]
QEP Resources Announces Closing of Sale of Northwest Louisiana Natural Gas Assets
DENVER, Jan. 10, 2019 (GLOBE NEWSWIRE) — QEP Resources, Inc. (NYSE: QEP) (“QEP” or the “Company”) announced today that the sale of its natural gas and oil producing properties, undeveloped acreage and associated gas gathering and treating systems in the Haynesville/Cotton Valley has closed.
As part of this transaction, Aethon III, an affiliate of Aethon Energy (the “Buyer”), assumed all firm gas transportation agreements related to these assets. In addition, QEP novated to the Buyer natural gas derivative contracts covering approximately 40 Bcf of gas for the last eleven months of 2019.
The Company intends to use the proceeds from the divestiture to repay the outstanding balance on its revolving credit facility and to help fund a portion of its 2019 capital expenditure program.
About QEP Resources
QEP Resources, Inc. (NYSE:QEP) is an independent crude oil and natural gas exploration and production company with operations in two regions of the United States: the Southern Region (primarily Texas) and the Northern Region (primarily North Dakota).
About Aethon Energy
Aethon Energy Management LLC is a Dallas-based private investment firm formed in 1990 that has managed and operated over $2.5 billion of assets, and is focused on direct investments in North American onshore oil & gas. Aethon III is an investment vehicle formed to acquire onshore assets in North America in partnership with the Ontario Teachers’ Pension Plan and Redbird Capital Partners.