Questar Corp. has scheduled the spin-off of its exploration and production (E&P) and related businesses for June 30, the company said Monday.
The plan first was announced in April and approved by the board of directors in May (see Daily GPI, May 19).
The spin-off is to be structured as a pro-rata dividend of the common stock of subsidiary QEP Resources Inc. (formerly Questar Market Resources). Following the dividend, Questar shareholders would own an equal number of shares of both Questar and QEP.
Shareholders as of close of business on Friday (June 18) are to receive one share of QEP for each share of Questar they own. QEP, to be based in Denver, is to include units that accounted for more than half (54%) of 2009 net income, including the E&P unit, the midstream businesses and energy trading subsidiaries.
Questar still would be headquartered in Salt Lake City and would house three subsidiaries, including Questar Gas, a regulated utility that serves about 900,000 homes and businesses in Idaho, Utah and Wyoming. It also would own the gas pipeline unit and Wexpro, the gas production unit that supplies the utility.
Questar common stock would continue to trade on the New York Stock Exchange (NYSE) under the symbol “STR.” QEP common stock is to begin trading on the NYSE on a “when-issued” basis under the symbol “QEP WI” beginning on Wednesday (June 16). On July 1 “when-issued” trading of QEP common stock would end and trading under the symbol “QEP” is to begin.
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