SALT LAKE CITY--()--Questar Corporation (NYSE:STR) announced today that it is considering a possible tax-free spin-off of the company’s natural gas and oil exploration and production (E&P) business. The new E&P company would be comprised of Questar subsidiaries Questar E&P Company, Questar Gas Management, and Questar Energy Trading. After the spin-off, Questar Corporation would remain an integrated natural gas company comprised of subsidiaries Wexpro Company, Questar Pipeline, and Questar Gas Company. Questar corporate headquarters would remain in Salt Lake City.
“A separation of our high-growth E&P business from our regulated businesses may be a logical step in a long-term strategy that has served all Questar stakeholders well over the past decade”
“A separation of our high-growth E&P business from our regulated businesses may be a logical step in a long-term strategy that has served all Questar stakeholders well over the past decade,” said Keith O. Rattie, Questar’s Chairman, President and Chief Executive Officer. “We’re evaluating whether now is the time to take that step. If consummated, we believe the spin-off would create two top-tier companies in their respective market segments.” Rattie added that Questar has engaged financial and legal advisors to assist with the evaluation. Subject to certain precedent conditions and board approval, the spin-off transaction may occur in the second half of 2010.
Questar Corporation is a natural gas-focused energy company with an enterprise value of about $10 billion. Questar subsidiaries include:
Questar will release first-quarter earnings after the close of U.S. financial markets on April 27, 2010, and will conduct a conference call for investors at 7:30 AM MDT on April 28, 2010.
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For more information, visit Questar’s website, www.questar.com.