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EQT purchases Chevron's Appalachia assets

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Oilfield Technology,

EQT Corp. has entered into a definitive purchase and sale agreement with Chevron USA Inc. under which EQT will acquire Chevron's upstream and midstream assets located in the Appalachian Basin for US$735 million, subject to customary adjustments at closing.

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.

Asset highlights:

  • 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."

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Upstream news US upstream news Oil & gas news