QEP to use stock proceeds, cash, revolver borrowings for acquisition

By Lisa Kerner

Charlotte, N.C., June 28 – QEP Resources, Inc. will use proceeds from its common share equity offering, cash on hand and, if needed, borrowings under its revolver to fund its $600 million acquisition of oil and gas properties in the northern Midland Basin of the Permian Basin, according to chief financial officer Richard Doleshek.

Doleshek discussed the acquisition during a presentation on Tuesday at the J.P. Morgan Energy Equity Investor Conference in New York City.

On Monday, QEP completed the sale of 23 million shares of common stock, including 3 million shares issued in connection with the underwriters’ full exercise of their option to purchase additional shares. The company received gross proceeds of about $413 million from the offering, including about $53.9 million in connection with the sale of the additional shares, according to a news release.

At March 31, QEP had $616 million of cash on the balance sheet and no borrowings under its revolver.

Doleshek said he expects the company to have more than $1 billion at the end of the second quarter before closing the acquisition.

QEP is a natural gas and crude oil exploration and production company based in Denver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.