Barron's: QEP Resources, prodded by Jana, is a cheap oil and gas play

Among the many oil and gas companies that have recently captured the interest of activist investors, QEP Resources (QEP +1.2%) looks especially attractive, David Englander of Barron's writes.

Sterne Agee's Tim Rezvan notes that at QEP's current stock price, investors are assigning "little to no value" to QEP's pipeline assets and its 60% interest in QEP Midstream (QEPM); while a full separation isn't likely to happen right away, the company may speed the process of dropping down pipeline assets to QEPM.

Rezvan values QEP's pipeline assets at $13/share, assuming a multiple of 9x EBITDA, and thinks the E&P business is worth 5x EBITDA, or $31/share.

From other sites
Comments (1)
  • jggsparty
    , contributor
    Comments (3) | Send Message
    I am long QEPM-I bought QEPM in the hopes that someone like Jana would shake QEP management's tree and hopefully that would lead to some drop-down activity to QEPM. MLPs must either grow or they will lag the field. QEP management, for whatever reasons, does not seem inclined to act to add value to its businesses, and will need a push to the posterior to move forward.
    13 Nov 2013, 04:49 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs