QEP Resources (NYSE: QEP) is proceeding with anticipated plans to spin off its midstream field services division as part of a new company called Entrada Midstream.

The company would have preliminary capitalization of $1,114 million in equity value, it said in a securities filing known as a Form 10. The midstream field services division of the company had $1,698 million in assets at year end 2013.

It's still unclear how much debt Entrada would take on. Overall, the filing appears to be a slight positive and will likely provide assurance the company is moving forward in the process of becoming a standalone E&P, said David Tameron, senior analyst with Wells Fargo.

“Wall Street had been anticipating the filing of this form as it was widely broadcasted by management. It should be noted that QEP will continue to pursue other strategic alternatives for their remaining midstream assets, which include an outright sale,” Tameron said.

For instance, Hess Corp (NYSE: HES), said on May 22 that it would sell its retail operations after it had started the process of a spinoff.

“We continue to make good progress on the separation of our midstream business,” said Chuck Stanley, chairman, president and CEO of QEP. “We believe that the filing of the Form 10 and the parallel process to solicit alternative transactions gives QEP the most options to unlock value for shareholders.”

QEP will also retain their Haynesville Gathering System, which provided $2 million of EBITDA in the first quarter of 2014.

“From QEP Resources' perspective, the move likely makes sense as retaining midstream ownership in the field can lower the breakeven price in case they want to ramp drilling activity in the Haynesville,” Tameron said. “Also, from a logistics standpoint, the Haynesville Field Services assets would be fairly isolated from other Entrada assets, so keeping them at the QEP level makes sense.”

In December, QEP said it would pursue a separation of its midstream business, QEP Field Services Co., including the company’s majority interest in QEP Midstream Partners (NYSE: QEPM).

Tameron was among analysts who believed activist shareholder Jana Partners was pressuring the split.

In October, Jana Partners filed regulatory documents saying it held a 13.5 million share position in QEP, or 7.5% of shares outstanding. In March, it increased its holdings to 16.9 million shares, or 9.5%.

Jana had proposed a three-step plan to improve QEP share performance, including adding QEP board members with midstream experience, separating QEP Field Services from QEP and returning capital to shareholders through share repurchases.

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