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EQT Corp. to acquire Alta Resources

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Oilfield Technology,


EQT Corp. has entered into a purchase agreement with Alta Resources Development, LLC (Alta), pursuant to which EQT will acquire all of the membership interests in Alta's upstream and midstream subsidiaries for approximately US$2.925 billion, subject to customary closing adjustments. The transaction is expected to close in 3Q21, with an effective date of 1 January 2021.

The acquisition will add 1 billion ft3/d equivalent of gas production to the company's current net production.

The company said adding approximately 1 billion ft3/d equivalent of high-margin net production is expected to bolster free cash flow profile by adding approximately US$300 - 400 million of annual free cash flow and a total of approximately US$2 billion of free cash flow through 2026, an improvement of approximately 55% compared to the company's pre-transaction outlook. As a result, this transaction is projected to accelerate the company's deleveraging strategy, pulling near-term leverage below its 2.0x target.

EQT Corp's President and CEO Toby Rice stated: "Today marks another major milestone for EQT as we continue on our path to becoming the operator of choice for all of our stakeholders. The acquisition of Alta's assets represents an attractive entry into the Northeast Marcellus while accelerating our deleveraging path, providing attractive free cash flow per share accretion for our shareholders and adding highly economic inventory to EQT's already robust portfolio. In addition to increasing our long-term optionality, we believe this transaction accelerates both our path back to investment grade metrics and our shareholder return initiatives. We look forward to applying our differentiated modern operating model to maximise the prolific value embedded in these premier assets."


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Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06052021/eqt-corp-to-acquire-alta-resources/

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