QEP Resources Inc. (NYSE: QEP) launched a comprehensive review of strategic alternatives on Feb. 20, which the Denver-based company said could include a sale to activist investor Elliott Management Corp.

Additionally, QEP said it agreed to terminate the definitive agreement to sell its assets in the Williston Basin to Vantage Energy Acquisition Corp. (NASDAQ: VEAC) due to a deterioration in commodity prices. The company had entered the sale late last year as part of its strategy to become a pure-play Permian E&P.

The strategic review could result in a merger or sale of QEP or other transaction involving the company or its assets, according to the company press release.

“QEP intends to engage in discussions with a variety of parties that have expressed interest in a potential transaction, including Elliott Management Corporation,” the company said in the release.

Earlier this year, Elliott offered to buy QEP in an all-cash deal valued at $2.07 billion, saying that the company is “deeply undervalued.”

In addition to the strategic review, QEP also said Feb. 20 it plans to significantly reduce its general and administrative expense by roughly 45%, when comparing 2018 to 2020, in light of the reduction of the company's operational footprint over the last year. The company expects the majority of these reductions will be implemented during the first half of 2019.

Evercore and BMO Capital Markets are acting as financial advisers to QEP and Latham & Watkins LLP and Wachtell, Lipton, Rosen and Katz are serving as the company’s legal advisers.

QEP will continue to operate and develop its assets in the Williston Basin, including the company's South Antelope and Fort Berthold leaseholds.

Emily Patsy can be reached at epatsy@hartenergy.com.