QEP Midstream Partners: 20% Near-Term Upside In A Takeout, And 40-60% Longer Term
Thomas Lott • 28 Comments
Thomas Lott • 28 Comments
Oct. 17, 2014, 6:06 PM
- QEP Resources (NYSE:QEP) +4.1% AH after Bloomberg reports that Williams Cos. (NYSE:WMB) is among the bidders for its Entrada Midstream natural gas pipeline unit, which could fetch ~$2.5B in a sale.
- Questar (NYSE:STR), QEP’s former parent, also is interested in Entrada, a spokesperson for the gas utility said separately today.
- Entrada and 56%-owned QEP Midstream (NYSE:QEPM) own nearly 3K miles of gas pipelines in the Rocky Mountain region, handling gas gathering and processing services for several major energy companies.
Dec. 3, 2013, 12:24 PM
- QEP Resources' (QEP +2.1%) announcement that it will pursue a separation of its midstream business and its interest in QEP Midstream Partners (QEPM +2%) did not specify how it would be achieved, but Sterne Agee thinks it will happen through an IPO or an outright sale of the field services company and the interest in QEPM.
- There's a lot of room for growth in the midstream limited partnership, where incentive distribution rights kick in after a distribution of $0.2875 to limited partners, Sterne says; in Q3, the partnership distributed just $0.13.
- The firm also raises its price target on QEP to $39 from $36, based on a sum-of-the-parts estimated value.
Dec. 2, 2013, 4:28 PM
- QEP Resources (QEP) +5.1% AH after announcing it will pursue a separation of its midstream business, QEP Field Services, including QEP's interest in QEP Midstream Partners (QEPM).
- QEP's board asks management to work with the company's financial and legal advisers to evaluate the shareholder value impact of various separation alternatives.
Oct. 22, 2013, 10:59 AM
- Gains in QEP Resources (QEP +7.8%) far outpace other energy companies after activist investor Jana Partners disclosed a big stake and offered steps it wants to see to help unlock value.
- In response, QEP says it has been considering Jana's suggestions, which included support of the IPO of QEP Midstream Partners (QEPM); Jana criticizes the way the MLP was created and wants a fuller separation of the midstream operations, arguing QEP no longer needs control of them and pointing to Devon Energy's plan to combine its midstream operations with Crosstex Energy as a model to follow.
- Sterne Agee says Jana’s “activism is not a surprise,” and believes Jana is "focused on the correct lever to unlock value - QEP’s Field Services assets not being appropriately valued in QEP Resources’ share price."
QEP Midstream Partners LP owns, operates, acquires and develops midstream energy assets. The Company provides natural gas and crude oil gathering and transportation services in Colorado, North Dakota, Utah and Wyoming.
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States