PITTSBURGH–(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.
- 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.