QEP Resources Welcomes Input Of All Shareholders, Including JANA Partners

(RTTNews) - QEP Resources Inc. (QEP) issued a statement regarding the filing of an updated Schedule 13D beneficial ownership report by JANA Partners, LLC including a letter addressed to QEP's Board of Directors.

QEP Resources said that its Board and management team are working to develop strategies and take actions which it believes will create value for all of its shareholders. As an integral part of that process, the company welcomes the input of all shareholders, including JANA Partners, and regularly evaluate their suggestions and proposals, including the proposals that have been put forth recently by JANA.

QEP Resources said that it continues to work with its financial advisors to diligently analyze various alternatives to create greater value for all of its shareholders.

In a letter to Myles Scoggins, Lead Director of QEP Resources dated on November 13, 2013, JANA Partners LLC said that it wrote to follow up on its discussion with Scoggins about the immediately actionable plan JANA have laid out to reverse QEP's chronic underperformance for shareholders: (1) adding Board members and management with proven midstream experience; (2) separating QEP's midstream business or "QEPFS" to unlock its true value; and (3) pursuing a significant return of capital to QEP shareholders funded by non-core asset sales and dropdowns.

JANA Partners LLC, which owns 7.6% of the outstanding shares of QEP Resources, said in the letter that it had become clear that QEP Chairman and CEO Charles Stanley was unwilling to accept that true value maximization requires the full implementation of the plan, most importantly the immediate separation of QEPFS.

In fact, JANA said it had spoken with numerous parties who were interested in exploring a strategic transaction with QEP that would result in a separation of QEPFS, but were very hesitant to deal with Mr. Stanley given his apparent reluctance to pursue a full separation. It was the Board's duty to prevent Stanley from standing in the way of maximum value creation, yet after JANA discussions with Scoggins, Scoggins believe it was failing to do so.