EQT Corp., the Lower 48’s largest natural gas producer, said Tuesday it would acquire all of Chevron Corp.’s Appalachian assets in the Marcellus Shale for $735 million.
Expected to be completed by year’s end, the sale includes 450 MMcfe/d of production, 335,000 net acres, 100 wells in progress, two water systems and associated infrastructure in Pennsylvania and West Virginia.
“This acquisition is a natural bolt-on extension of EQT’s dominant position in the core of the southwest Marcellus,” said CEO Toby Rice. The purchase price is underpinned by proved developed producing reserves that “provide material upside to the company.”
Appalachian pure-play EQT plans to finance the deal with cash on hand, debt and capital market transactions, including an offering...