DENVER (AP) — Shares of natural gas and oil company QEP Resources Inc. fell Monday as investors were disappointed with the scope of its plan to spin off some its "midstream" business and take it public.
QEP said it will initially contribute a majority of its gathering assets in Wyoming and North Dakota to the master limited partnership that it wants to spin off. Midstream activities broadly refer to the processing, storage, marketing and shipping of oil and gas. QEP made no mention Monday of what will happen with the processing part of its business.
The company, which is based in Denver, also explores for oil and gas.
QEP said Monday that it hopes to raise $300 million to $400 million in proceeds from the initial public offering. It plans to file regulatory documents for the IPO by the second quarter of 2013.
Investors were not pleased with the design of the plan, and QEP shares fell $1.78, or 5.7 percent, to $29.59 in afternoon trading.
Jefferies analyst Subash Chandra said the scope of partnership is more limited than expected. Additionally, the analyst said the company will need to sell other assets to hit financial goals set out by management.