Questar Corp., Salt Lake City, (NYSE: STR) has completed its tax-free spin-off of the company's E&P business QEP Resources Inc. (NYSE: QEP).

The spin-off was structured as a pro-rata dividend of QEP Resources (formerly Questar Market Resources) stock. Post-spin QEP Resources will comprise QEP Energy Co. (formerly Questar E&P Co.), QEP Field Service Co. (formerly Questar Gas Management) and QEP Marketing Co. (formerly Questar Energy Trading). Questar will remain an integrated gas company consisting of subsidiaries Wexpro Co., Questar Pipeline and Questar Gas Co.

Questar shareholders received one share of QEP stock for each share of Questar stock. Questar shareholders now own an equal number of Questar and QEP shares. QEP stock now trades on the New York Stock Exchange as QEP.

Keith O. Rattie, who is Questar’s chairman, president and chief executive will remain as chairman of both Questar and QEP Resources. Charles B. Stanley has been named president and CEO of QEP Resources. Ronald W. Jibson has been named president and CEO of Questar.

Rattie says, “This is a momentous day for both Questar shareholders and our people. From one great 81-year old company, we’re creating two top-tier companies, each led by proven management backed by the finest organizations of people you’ll find anywhere. I’m proud of what the people of Questar have accomplished over the past decade. The Questar and QEP boards and I expect great things from both companies over the next decade and beyond.”

Stanley says, “Over the past four years, QEP Resources has grown production and proved reserves at compound annual growth rates of 14% and 17%, respectively. The same management and technical teams responsible for generating this strong track record remain with QEP Resources and will continue to generate industry-leading low cost, high margin growth for our shareholders. This transaction establishes QEP Resources as a top-tier, independent domestic exploration and production company and enables us to focus on developing our high-quality, low-cost asset portfolio.”

Questar operates upstream and midstream oil and gas assets in the Rockies, specifically in Wyoming, Utah, Colorado and North Dakota, and also in Oklahoma, Texas and Louisiana. Proved reserves were 2.7 trillion cubic feet of gas equivalent at year-end 2009.

Deutsche Bank Securities Inc. and Tudor, Pickering, Holt & Co. were financial advisors and Latham & Watkins LLP was legal advisor to Questar. Skaddan, Arps, Slate, Meagher, & Flom LLP was legal advisor to the board.