SALT LAKE CITY — Questar Corp. is a step closer to splitting its corporate atom.
The company announced Tuesday that its board of directors has authorized management to proceed with a tax-free spinoff to shareholders of its natural gas and oil exploration and production (E&P) and midstream field services businesses to form an independent, publicly traded company to be named QEP Resources, Inc.
Last month Questar Corp. announced that it had been considering a separation of those businesses. The transaction is subject to final approval by the boards of both companies.
Following the spinoff, Questar would remain a natural gas company comprising subsidiaries Wexpro Co., Questar Pipeline Co., and Questar Gas Co., according to a news release. Questar's corporate headquarters would remain in Salt Lake City.
QEP Resources Inc. (formerly Questar Market Resources) would comprise subsidiaries Questar Exploration & Production, Questar Gas Management, and Questar Energy Trading. Headquartered in Denver, the QEP Resources subsidiaries would be renamed QEP Energy, QEP Field Services, and QEP Marketing, respectively, the release states.
"This transaction is a logical step in a long-term strategy that has served all Questar stakeholders well," said Keith Rattie, Questar chairman, president and CEO. After completion of the spinoff, Rattie would serve as board chairman of both companies.