QEP RESOURCES TO PURSUE A SEPARATION OF ITS MIDSTREAM BUSINESS, QEP FIELD SERVICES CO INCLUDING CO'S INTEREST IN QEP MIDSTREAM PARTNERS, LP

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Oil producer QEP Resources Inc said on Monday it would spin off its pipeline business, bowing to pressure from activist hedge fund Jana Partners LLC.

QEP plans to spin off its QEP Field Services division, as well as its 25 percent stake in QEP Midstream Partners LP.

Jana, which is QEP's largest shareholder, had for months said it would prefer that QEP spin off its pipeline business as a separate business, contending QEP did not have the expertise to run the unit.

Shares of QEP rose 5.1 percent to $33.97 in after-hours trading on Monday.

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