EQT To Sell 40% Stake In Natural Gas Assets In Pennsylvania To Equinor For $500 Mln

(RTTNews) - Monday, EQT Corp. (EQT) announced that it has agreed to sell a 40 percent stake in specific non-operated natural gas assets in Northeast Pennsylvania to Equinor USA Onshore Properties Inc. and their affiliates.

Valued at $500 million in cash, the transaction also involves the exchange of upstream and midstream assets.

Through the transaction, EQT will receive assets including approximately 26,000 net acres in Monroe County, Ohio, and around 10,000 net acres in Lycoming County, Pennsylvania. By 2025, these assets might have estimated net productions of 135 million cubic feet equivalent per day or MMcfe/d and 15 MMcfe/d, respectively.

Furthermore, EQT will acquire the remaining 16.25 percent ownership in EQT-operated gathering systems that serve core-operated acreage in Lycoming County.

Additionally, there is a gas buy-back agreement in place, where Equinor will purchase gas from EQT at a premium to in-basin pricing until the first quarter of 2028.

The transaction is set to be finalized in the latter part of the second quarter of 2024.