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SALT LAKE CITY (AP) -- Questar Corp. says its board of directors has authorized a plan to spin off the company's exploration and development operations into a separate company.
Questar says it's breaking up the company because it combines two distinct businesses -- one a regulated utility that provides steady but conservative returns, the other a fast-growing natural gas producer that can return higher but more volatile returns.
Questar says the board gave its conditional approval Monday. The deal is subject to market reaction, which has been favorable, and a handful of agreements still being worked out to divide the companies and their debt loads.
Questar announced a name for the separate, publicly traded company: QEP Resources Inc. It will be headquartered in Denver, where many of Questar's drilling employees are based.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
