PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) today announced that EQT, through its subsidiary EQT Production Company, has won a bankruptcy auction to acquire 53,400 core net Marcellus acres, including drilling rights on 44,100 net acres in the Utica and current natural gas production of approximately 80 MMcfe per day, from Stone Energy Corp. for $527 million. Pending final approval by the bankruptcy court at a hearing scheduled for February 10, 2017, the transaction is expected to close on or about February 28, 2017. EQT will finance the acquisition with cash-on-hand.
The acquired acres are within EQT’s core liquids-rich development areas -- primarily located in the Wetzel, Marshall, Tyler, and Marion Counties of West Virginia -- and complement the Company’s adjacent operations. The acquisition includes approximately 173 new Marcellus locations. The acreage has an average 85% net revenue interest and 86% is either held by production or has lease expiration terms that extend beyond 2019.
The assets include 174 Marcellus wells – of which 123 wells are developed and 51 are in-progress. Also included are 20 miles of gathering pipeline and an additional 32,000 acres outside the company’s core development area.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. Through safe and responsible operations, the Company is committed to meeting the country’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 also owns a 90% limited partner interest in EQT GP Holdings, LP. EQT GP Holdings, LP owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP.
Visit EQT Corporation at www.EQT.com.
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 regarding the announced transaction and the operational performance of EQT and its subsidiaries, including the ability of EQT to complete, and the timing of the closing of, the transaction, guidance regarding the number of drilling locations and related average lateral length, estimated Utica acres, and EQT’s ability to extend the lateral length of existing drilling locations as a result of the transaction. The forward looking statements included in this news release 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 set forth under Item 1A, "Risk Factors" in EQT’s Annual Report on Form 10-K for the year ended December 31, 2015, and in other reports by EQT on file 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.