QEP Field Services Co., the wholly owned subsidiary of QEP Resources Inc. (QEP), completed the sale of its midstream business, QEP Resources said Dec. 2.

The ownership interest in QEP Midstream Partners LP (NYSE: QEPM) was sold to Tesoro Logistics LP in a cash transaction valued at $2.5 billion, including $230 million to refinance debt at QEPM, the company added.

“With the closing of this transaction, QEP has achieved a significant milestone in its transformation to become a more competitive and financially strong independent E&P company with assets in two of North America’s most prolific crude oil provinces, the Williston and Permian Basins, and low-cost, high quality natural gas properties in the Rocky Mountains and in northwest Louisiana,” said Chuck Stanley, chairman, president and CEO of QEP.

“Emerging from this transaction, we believe QEP is well positioned to compete throughout all commodity market cycles as a result of our strong balance sheet, our focused portfolio of both crude oil and natural gas assets and our relentless commitment to creating value for our shareholders,” he added.

The company repaid its $600 million term loan and all of the borrowings under its revolving credit facility, including $230 million that was borrowed to refinance QEPM’s outstanding debts, QEP Resources noted.

QEP also said that it amended and extended its corporate revolving credit facility. Commitments under the credit facility were increased to $1.8 billion and the facility contains a $500 million accordion feature, the company said. The facility’s maturity date was extended to December 2019. Wells Fargo Bank NA is the administrative agent.

Denver-based QEP Resources Inc. produces domestic oil and natural gas.