EQT purchases Chevron's Appalachia assets
Published by Nicholas Woodroof,
The transaction is expected to close late in 4Q20, subject to customary closing conditions, with an effective date under the purchase and sale agreement of 1July 2020. EQT intends to finance the acquisition, subject to market conditions and other factors, with cash on hand, drawings under its revolving credit facility and/or one or more capital markets transactions.
- Current net production of approximately 450 million ft3/d; 75% gas / 25% liquids.
- Approximately 100 work-in-progress wells.
- Approximately 125 000 core net Marcellus acres; 335 000 total net Marcellus acres.
- 31% ownership interest in Laurel Mountain Midstream.
- Two water systems and associated infrastructure located in PA and WV.
President and CEO Toby Rice stated: "This acquisition is a natural bolt-on extension of EQT's dominant position in the core of the southwest Marcellus and supplements our already impressive asset base. With the purchase price underpinned by PDP value, the extensive work-in-progress well inventory, core undeveloped acreage and water assets provide material value upside. Our unique knowledge of these assets, coupled with our superior operating model, puts these assets in the right hands to maximise the embedded value."
Rice continued: "The digital work environment and business processes that we have created will allow for the seamless integration of these assets into our existing portfolio, while the favourable financial impacts will benefit both equity and debt holders. This transaction represents another strategic step this team is taking to create value for all stakeholders, while enhancing the durability and sustainability of our business."
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/28102020/eqt-purchases-chevrons-appalachia-assets/
You might also like
CGG, TGS and BGP complete next phase of 3D multi-client survey offshore Suriname
Fast-track products for this recently completed Phase IV will be ready for review towards the middle of this year, with the final products for the entire programme available in late 2023.