QEP Resources announced that it had reached an agreement to annul the deal to sell its Williston Basin assets to Vantage Energy Acquisition.
The company cited reduced commodity prices and uncertainty over the fulfilment of agreed conditions as the reason for calling off the transaction.
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QEP stated that it would continue to hold, operate and develop the assets in North Dakota and Montana, including South Antelope and Fort Berthold leaseholds in the Williston Basin.
Last November, the firm signed a definitive agreement to sell the assets to Vantage for a consideration of up to $1.725bn, in order to simplify its asset portfolio as part of plans to become a Permian pure-play operator.
The company intended to use the sale proceeds to fund the development of its core Permian assets and reduce debt.
Meanwhile, QEP also announced that it had started a review of strategic alternatives, including a merger or sale of the company, to maximise shareholder value.
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By GlobalDataIn this regard, the firm will hold discussions with various parties that have expressed interest in a potential deal, including Elliott Management, which made a $2.07bn takeover bid last month.
The proposal made by Elliott valued QEP at $8.75 per share.
However, there is no certainty that a deal would be reached as part of the review process, QEP noted.
The company also unveiled plans to decrease its general and administrative expenses by around 45%, when comparing 2018 to 2020, with the majority of these reductions set to be implemented during the first half of this year.
