EQT Corporation Entered Into Agreement With Equinor USA Onshore Properties And Affiliates To Sell 40% Interest In Non-Operate Natural Gas Assets In Northeast, PA; Consideration For Transaction Is $500M Cash And Upstream Assets
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EQT Corporation has agreed to sell a 40% interest in its non-operate natural gas assets in Northeast, PA, to Equinor USA Onshore Properties and affiliates for $500M in cash and upstream assets. The assets EQT will receive include approximately 26,000 net acres in Monroe County, Ohio, and 10,000 net acres in Lycoming County, Pennsylvania, with expected net productions of ~135 MMcfe/d and ~15 MMcfe/d by 2025, respectively. Additionally, EQT will gain a 16.25% ownership in EQT-operated gathering systems in Lycoming County and a gas buy-back agreement with Equinor through Q1 2028.
April 15, 2024 | 12:06 pm
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POSITIVE IMPACT
Equinor ASA acquires a 40% interest in EQT's non-operate natural gas assets in Northeast, PA, expanding its footprint in the US natural gas market.
Equinor's acquisition of a significant stake in EQT's assets marks a strategic expansion in the US natural gas sector, likely to bolster its market presence and operational scale. The transaction, including the gas buy-back agreement, positions Equinor favorably in the US market, potentially enhancing its revenue and growth prospects.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
EQT Corporation is selling a 40% interest in its Northeast PA natural gas assets to Equinor for $500M and valuable upstream assets, enhancing its operational and financial position.
This transaction not only provides EQT with significant cash proceeds but also strategic upstream assets that enhance its production capabilities and operational efficiency. The gas buy-back agreement further secures a premium sales channel for its gas, likely improving its revenue outlook and investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100