EQT to Sell Non-Core Huron Acreage for $575 Million Cash
29 June 2018 - 4:00PM
Business Wire
EQT Corporation (NYSE: EQT) (EQT) announced that it has entered
into a definitive agreement to sell approximately 2.5 million
non-core, net acres in the Huron Play located in Southern
Appalachia to Diversified Gas and Oil PLC, for $575 million
cash. The transaction also relieves EQT of approximately
$200 million of plugging and other liabilities associated with
the assets. EQT will retain the deep drilling rights across
the acreage. The transaction is subject to customary closing
conditions and is expected to close in late July 2018. Proceeds
from the sale will be used to reduce EQT's net-debt.
Assets include:
- approximately 2.5 million
non-core, net acres in Kentucky, Virginia, and southern West
Virginia – with a 92% net revenue interest
- approximately 12,000 wells with current
net production of approximately 200 MMcfe per day
- 1.6 Tcfe total net proved developed
reserves
- 6,400 miles of low-pressure gathering
lines and 59 compression stations
The transaction also includes eight EQT field locations, as well
as the transfer of approximately 250 employees who work in or
support production, pipeline, compression, and measurement
operations.
The 2018 operational and financial guidance will be updated to
reflect the impact of the transaction in the second quarter
earnings report scheduled for July 26, 2018.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and
transmission. With more than 130 years of experience and a
long-standing history of good corporate citizenship, EQT is the
largest producer of natural gas in the United States. As a leader
in the use of advanced horizontal drilling technology, EQT is
committed to minimizing the impact of drilling-related activities
and reducing its overall environmental footprint. Through safe and
responsible operations, EQT is helping to meet our nation’s growing
demand for clean-burning energy, while continuing to provide a
rewarding workplace and enrich the communities where its employees
live and work. EQT owns the general partner interest and a 91%
limited partner interest in EQT GP Holdings, LP; as well as the
general partner interest and a 28% limited partner interest in Rice
Midstream Partners LP. EQT GP Holdings, LP owns the general partner
interest, all of the incentive distribution rights, and a portion
of the limited partner interest in EQT Midstream Partners, LP; as
well as all of the incentive distribution rights in Rice Midstream
Partners LP.
Visit EQT Corporation at www.EQT.com; and to learn more about
EQT’s sustainability efforts, please visit https://csr.eqt.com.
Cautionary Statements
Disclosures in this news release contain certain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Statements that do not relate strictly to
historical or current facts are forward-looking. Without limiting
the generality of the foregoing, forward-looking statements
contained in this news release specifically include the
expectations of plans, strategies, objectives and growth and
anticipated financial and operational performance of EQT and its
subsidiaries, including EQT’s ability to complete, and the timing
of the closing of, the transaction, the amount of liability savings
to EQT resulting from the transaction and changes in guidance
regarding EQT’s projected 2018 sales volumes. These statements
involve risks and uncertainties that could cause actual results to
differ materially from projected results. Accordingly, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. EQT has based these forward-looking
statements on current expectations and assumptions about future
events. While EQT considers these expectations and assumptions to
be reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks and
uncertainties, many of which are difficult to predict and beyond
EQT’s control. The risks and uncertainties that may affect the
operations, performance and results of EQT’s business and
forward-looking statements include, but are not limited to, those
risks discussed in EQT’s most recent Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which such
statement is made and EQT does not intend to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180628006363/en/
EQT analyst inquires:Patrick Kane, 412-553-7833Chief
Investor Relations Officerpkane@eqt.comorEQT Midstream Partners
analyst inquires:Nate Tetlow, 412-553-5834Investor Relations
Directorntetlow@eqt.comorMedia inquiries:Natalie Cox,
412-395-3941Corporate Director, Communicationsncox@eqt.com
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