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QEP Resources will separate its midstream business

DENVER (AP) -- Oil and gas company QEP Resources said Monday it will separate its midstream business, QEP Field Services, into a separate company.

The move will include QEP's interest in QEP Midstream Partners. QEP said the move will create more value for shareholders and will allow the two businesses to allocate their resources independently and compete more effectively in their markets.

Midstream activities broadly refer to the processing, storage, marketing and shipping of oil and gas. Denver-based QEP also explores for oil and gas.

QEP Resources said it is looking for additional management to help run QEP Field Services as a stand-alone company. The company said it is evaluating different separation options and will update shareholders on its plans during the first quarter of 2014.

In October, activist hedge fund Jana Partners LLC disclosed a stake in QEP Resources and said that it would seek QEP's breakup, pushing the company to separate the midstream partnership from the rest of its business.

Shares of QEP Resources Inc. rose 30 cents to $32.32 on Monday.