Tuesday, October 21, 2014

QEP Sells Midstream, But Keeps Haynesville Portion

Tesoro made a splash over the weekend when it announced the purchase of the midstream assets of QEP Resources (formerly Questar) by one of its subsidiaries for $2.5 billion in cash.  The sale of QEP Field Services included gathering, treatment and pipeline infrastructure, but QEP retained midstream assets associated with the Haynesville Shale region.

Before reading too much about how special the Haynesville is into this announcement, Tesoro probably excluded the Haynesville because it was trying to concentrate on the sexier resource plays in the Rocky Mountains, which is where the majority of QEP's assets are concentrated, and the Haynesville assets are a very small portion of QEP Field Services.

But that's not to say that QEP is dead in the Haynesville.  QEP has budgeted $80 million for 2014 Haynesville wells, but it is in non-operated wells.  Recently, it has been getting on the docket of the DNR, which should lead to some new permits as operator.  I won't believe it until I see a rig, though.  QEP's last Haynesville permit was approved in January 2012.

Speaking of old dogs, Comstock Resources received a handful of new permits a couple of weeks ago in the Spider and Logansport fields in DeSoto Parish.  Same goes - I won't get excited until I see a rig, especially since Comstock hasn't indicated that it has any money budgeted for 2014 Louisiana drilling.

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