Pittsburgh, Pa.-based EQT Corp. (NYSE: EQT) plans to acquire some 58,000 net acres in the Pennsylvania Marcellus shale from a group of private operators and landowners for approximately $280 million in stock and cash. EQT will pay 10% in cash and the remainder in stock.
The acreage is primarily in Cameron, Clearfield, Elk and Jefferson counties. The purchase includes a 200-mile gathering system and approximately 100 producing vertical wells. Pro forma, EQT will hold more than 500,000 net acres in the Marcellus fairway.
EQT chairman and chief executive Murry Gerber says, “We are pleased to add to our substantial, firmly held acreage position in the heart of the Marcellus fairway. We have extensive midstream assets and firm contracts to gather and transport natural gas to the lucrative eastern markets.”
He adds the acquisition involves a 93% net revenue interest, “which is significantly higher than the 80% net revenue interest that has been typical of recent transactions.” Additionally, approximately 88% of the acquired acreage will be held by production and the remainder will be subject to leases with a weighted average 10-year term.
Closing was expected by April 30.
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