QEP Midstream Partners LP (NYSE: QEPM) has acquired 40% of the outstanding membership interest in Green River Processing LLC for $230 million in cash from QEP Field Services Company, a wholly owned subsidiary of QEP Resources Inc. (NYSE: QEP).

The dropdown is the partnership's first acquisition since its initial public offering in August 2013. It is expected to be immediately accretive to distributable cash flow per unit. The partnership used cash on hand and proceeds from its $500 million credit facility to fund the acquisition.

Green River Processing owns the Blacks Fork natural gas processing complex and the Emigrant Trail natural gas processing plant located in southwest Wyoming. The assets consist of four natural gas processing plants with total processing capacity of 890 million cubic feet per day (MMcf/d), and natural gas liquids fractionation capacity of 15,000 barrels per day (bbl/d) with interconnects to six interstate natural gas pipelines and direct pipeline access to the Mt. Belvieu and Conway NGL markets.

In 2013, total natural gas inlet volumes for Green River Processing were approximately 201 million MMBtu, of which 65% were processed under fee-based processing agreements and 35% were processed under keep-whole processing agreements.

QEP Midstream Partners is a master limited partnership formed by QEP Resources to own, operate, acquire and develop midstream assets.