Tesoro Corp. affiliate Tesoro Logistics LP has agreed to acquire QEP Resources Inc.’s wholly owned subsidiary QEP Field Services LLC (QEPFS), including its 58% partnership interests in QEP Midstream Partners LP for $2.5 billion. The deal is expected to close in the fourth quarter.
The deal includes what Tesoro describes as strategically located natural gas gathering and processing assets in the Rocky Mountains, Uinta basin, and North Dakota, expanding the company’s growth opportunity into gas midstream business.
QEPFS owns majority interest in the Rendezvous Gas Services LLC partnership, which gathers gas in western Wyoming for Pinedale Anticline and Jonah field producers for delivery to multiple interstate pipelines.
QEPFS owns 38% of Uintah Basin Field Services LLC, as well as 50% of Three Rivers Gathering LLC, both of which operate gas-gathering facilities in eastern Utah.
The company also owns and operates a 21-mile, 20-in. pipeline that extends from the Blacks Fork gas processing plant complex in southwest Wyoming to the Muddy Creek compressor station about 6 miles south-southwest of Opal in Lincoln County.
QEP Resources during the past year moved to spin off QEPFS into a separate publicly traded company. (OGJ Online, June 27, 2014).
