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Tesoro expands logistics with $2.5B QEP deal

Oct 20, 2014 - The Deal Pipeline
Mergers and Acquisitions

Denver oil and gas explorer QEP Resources Inc. (QEP) said late Sunday it agreed to sell its midstream business to Tesoro Logistics LP (TLLP) for $2.5 billion in cash, the third multibillion-dollar deal in the energy midstream sector in as many weeks.

The deal includes QEP's 58% ownership of QEP Midstream Partners LP (QEPM) and $230 million to refinance QEP Midstream Partners' debt. QEP is keeping QEP Field Services LLC's gathering system in the Haynesville in northwest Louisiana.