Questar board gives go-ahead for spinoff of natural gas-oil exploration business

Questar approves spinoff of natural gas business

SALT LAKE CITY — Questar said Monday that its board of directors has approved the spinoff of its natural gas and oil exploration and midstream field services businesses.

The distribution will occur on June 30 to Questar shareholders of record as of the close of business on June 18.

When the split occurs, Questar will be a natural gas-focused company that includes a utility serving 900,000 homes and businesses in Utah, Wyoming and Idaho. The new company, QEP Resources, will be an exploration and production company.

Questar says it’s breaking up the company because it combines two distinct businesses — one a regulated utility that provides steady but conservative returns, the other a fast-growing natural gas producer that can provide higher but more volatile returns.

Questar shareholders will receive one share of QEP Resources common stock for each share of Questar common stock held on the record date.

Questar common shares will continue trading under the symbol STR through the distribution date and thereafter.

QEP shares are expected to begin trading on a when-issued basis under the symbol QEP WI beginning Wednesday. Regular trading of the shares will start July 1.

(This version CORRECTS record date to June 18 sted 28)