Acquisition

On September 27, 2012, QEP Energy completed an acquisition of oil and gas properties in the Williston Basin for an aggregate purchase price of approximately $1.4 billion, subject to post-closing adjustments (the “Acquisition”). The properties are located in Williams and McKenzie counties of North Dakota, approximately 12 miles west of QEP's existing core acreage in the Williston Basin.

The Acquisition meets the definition of a business combination under ASC 805, Business Combinations, as it included proved properties. Pro-forma information has not been presented due to the immateriality of revenues and expenses related to the Acquisition during the periods presented. The results of operations from September 27 to September 30, 2012 from the assets purchased in the Acquisition are not included in the three and nine months ended September 30, 2012 Condensed Consolidated Statements of Operations. During the third quarter of 2012, QEP Energy recorded the acquisition on its Condensed Consolidated Balance Sheet; however, the final purchase price is subject to revision based on the final valuation work and settlement of post-closing adjustments. The following table presents a summary of the preliminary purchase accounting entries (in millions):



Consideration given:
Cash paid at closing	$	1,394.2

Amounts recognized for preliminary fair value of assets acquired and liabilities assumed:
Proved properties	$	707.6
Unproved properties	686.5
Asset retirement obligations	(0.6		)
Other assets	0.7
Total fair value	$	1,394.2