QEP RESOURCES, INC. (NYSE:QEP) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k

8 years ago

QEP RESOURCES, INC. (NYSE:QEP) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01

Entry into a Material Definitive Agreement

Credit Agreement Amendment

On May 5, 2017, QEP Resources, Inc. (“QEP”), Wells Fargo Bank,
National Association, in its capacity as administrative agent
(“Wells Fargo”), and the other financial institutions party
thereto entered into the Sixth Amendment to Credit Agreement (the
Amendment), which amends the Credit Agreement dated as of August
25, 2011 (as amended the Revolving Credit Agreement).

The Amendment amended the Revolving Credit Agreement to, among
other matters:

(i)change the leverage ratio covenant to permit a maximum ratio
of consolidated net funded debt to consolidated EBITDAX of:

(a)4.25 to 1.00 for fiscal quarters ended prior to and on
December 31, 2017,

(b)4.00 to 1.00 commencing with the fiscal quarter ending March
31, 2018, through and including the fiscal quarter ending
December 31, 2018, and

(ii)modify the definition of consolidated EBITDAX to allow the
adding back of certain non-cash items, including stock-based
compensation and non-recurring or extraordinary expenses related
to contingent liabilities,

(iii)modify the definition of consolidated funded debt to exclude
indebtedness consisting of mandatory convertible securities,

(iv)modify the definition of present value to consolidated net
funded debt ratio to allow for adding 3.50 times the consolidated
EBITDA-midstream of the trailing four fiscal quarters to the
present value,

(v)modify the dispositions of property negative covenant to allow
asset sales as a reverse (or forward) like kind exchange under
Section 1031; subject to maximum of 15% of PPE net book value per
fiscal year, and

(vi)amend the definitions of debt ratings trigger event and debt
ratings trigger period, and certain other provisions of the
Credit Agreement, as more specifically set forth in the
Amendment.



Item 9.01	Exhibits

(d) Exhibits.



Exhibit No.	Exhibit
10.1	Sixth Amendment to Credit Agreement, dated as of May 5 2017, by and among QEP Resources, Inc., the Lenders party thereto and Wells Fargo Bank, National Association, in its capacity as administrative agent for the Lenders.

About QEP RESOURCES, INC. (NYSE:QEP)
QEP Resources, Inc. (QEP) is a holding company with two subsidiaries, QEP Energy Company and QEP Marketing Company, which are engaged in two primary lines of business: oil and gas exploration and production (QEP Energy), and oil and gas marketing, operation of a gas gathering system and an underground gas storage facility, and corporate activities (QEP Marketing and Other). The Company operates through QEP Energy segment. QEP Energy Company conducts exploration and production (E&P) activities in several of North America’s hydrocarbon resource plays. The Company’s operations are focused in two geographic regions: the Northern Region (primarily in Wyoming, North Dakota and Utah) and the Southern Region (primarily in Texas and Louisiana) of the United States. The Company’s properties in its Northern Region include Pinedale, Williston Basin, Uinta Basin and Other Northern properties. Its Southern Region includes various properties, such as Permian Basin and Midcontinent operations. QEP RESOURCES, INC. (NYSE:QEP) Recent Trading Information
QEP RESOURCES, INC. (NYSE:QEP) closed its last trading session up +0.16 at 11.63 with 3,512,605 shares trading hands.