QEP Resources Inc., announced that its wholly owned subsidiary, QEP Energy Company, has entered into a definitive agreement to acquire oil and gas properties in the Permian Basin for an aggregate purchase price of approximately $950 million (the 'Acquisition'). The properties, which are located in the Midland sub-basin, primarily in Martin and Andrews counties in west Texas, will diversify the Company's exploration and production footprint, and advance QEP's objective to create long-term shareholder value through the continued emphasis on high-margin crude oil and natural gas liquids production. The Company's Board of Directors was unanimous in its approval of the Acquisition.

Acquisition Highlights:

◾ Current net production of approximately 6,700 barrels of oil equivalent per day (Boepd), of which approximately 68% is crude oil ◾ Net proved reserves based on internal estimates of approximately 47 million barrels of oil equivalent (MMBoe) ◾ Total estimated net recoverable resources of up to 300 MMBoe ◾ Nine potential horizontal development targets over a 3,000 foot vertical section ◾ 26,519 net acres with an average working interest of 94% and a 75% net revenue interest ◾ 264 vertical producing wells with nearby horizontal activity by industry peers ◾ Potential for over 200 vertical and up to 775 horizontal drilling locations ◾ Attractive valuation at less than 4.0x estimated 2015 Adjusted EBITDA ◾ Combined with anticipated asset sales, significantly transforms QEP's asset base towards oil- and liquids-weighted growth

Tags: QEP Resources Inc.