EQT to Acquire 62,500 Core Marcellus Acres from Statoil for USD 407m.
M2 EQUITYBITES-May 3, 2016-EQT to Acquire 62,500 Core Marcellus Acres from Statoil for USD 407m
(C)2016 M2 COMMUNICATIONS http://www.m2.com
3 May 2016 - US-based energy company EQT Corp. (NYSE: EQT) has signed a definitive agreement to acquire 62,500 net acres, and current natural gas production of 50 MMcfe per day from Statoil USA Onshore Properties, Inc. (Statoil) for USD 407m, the company said.
The transaction is expected to close on or about 8 July 2016.
Primarily located in Wetzel, Tyler, and Harrison Counties of West Virginia, the acquisition adds a sizeable amount of acreage within EQT's core development area and complements the company's adjacent operations in Wetzel County, West Virginia.
The 62,500 acre acquisition includes existing Marcellus production and approximately 500 undeveloped locations that are expected to have an average lateral length of 5,600 feet.
Much of this acreage is contiguous with EQT's existing development area; therefore, the lateral length of 106 existing EQT locations can now be extended from 3,000 to 6,500 feet, which will reduce overall costs and deliver stronger well economics.
In line with the company's consolidation strategy, this acquisition increases EQT's core undeveloped Marcellus acreage by 29%.
The acquisition also includes drilling rights on an estimated 53,000 net acres that are undeveloped and prospective for the deep Utica.
Assets include 31 Marcellus wells, 24 of which are currently producing three complete, not online and four drilled, not complete.
The resource potential of the acreage is estimated at 9.2 Tcf; and 87% of the acreage is either held by production or has lease expiration terms that extend beyond 2018. The acreage has an 84% net revenue interest.
There is no change to the company's 2016 CAPEX or Operating Cash Flow guidance.
EQT is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission.
The company also owns a 90% limited partner interest in EQT GP Holdings, LP. EQT GP Holdings, LP owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP.
((Comments on this story may be sent to email@example.com))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||May 3, 2016|
|Previous Article:||Medical Device Company Dexcom Acquires Germany, Switzerland and Austria Distributor.|
|Next Article:||Dell, EMC to Name Combined Company as "Dell Technologies".|