QEP Resources Inc. has engaged financial advisers to assist with the divestiture of its Williston and Uinta basin assets and plans to allocate about 65% of its $1.08 billion 2018 capital investment plan to Permian Basin development as it moves to accelerate its transition to a pure-play Permian Basin company.
Data rooms for the Williston and Uinta basin asset divestiture are expected to be opened in late March or early April, QEP said, adding that it expects to market remaining non-Permian assets, including the Haynesville/Cotton Valley assets, in the second half of 2018.
Proceeds from the asset sales will be used to help fund development in the Permian Basin until the it reaches operating cash flow neutrality in 2019, reduce debt and return shareholder cash through repurchases, according to a Feb. 28 news release.
QEP's board also authorized a $1.25 billion share repurchase program, which is subject to available cash, market conditions and the proceeds from asset sales, according to its Feb. 28 earnings release.
"The strategic initiatives announced today are responsive to ongoing shareholder feedback and fit with our long-term goal of becoming a more oil-focused company. The initiatives will allow us to simplify our portfolio, streamline our operations, and sharpen our focus on our Permian Basin assets," said Chairman and CEO Chuck Stanley.
The crude oil and natural gas exploration and production company's current Permian Basin assets consist of about 44,000 net acres in the core of the northern Midland Basin, which delivered 8.2 MMboe of net production in 2017 with estimated total proved year-end 2017 reserves of 272.7 MMboe.
