PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) today announced that it has signed a
definitive agreement to acquire 62,500 net acres, and current natural
gas production of 50 MMcfe per day from Statoil USA Onshore Properties,
Inc. (Statoil) for $407 million, subject to customary closing
conditions. The transaction is expected to close on or about July 8,
2016.
Primarily located in Wetzel, Tyler, and Harrison Counties of West
Virginia, the acquisition adds a sizeable amount of acreage within EQT’s
core development area and complements the Company’s adjacent operations
in Wetzel County, West Virginia. The 62,500 acre acquisition includes
existing Marcellus production and approximately 500 undeveloped
locations that are expected to have an average lateral length of 5,600
feet. Much of this acreage is contiguous with EQT’s existing development
area; therefore, the lateral length of 106 existing EQT locations can
now be extended from 3,000 to 6,500 feet, which will reduce overall
costs and deliver stronger well economics.
In line with the Company’s consolidation strategy, this acquisition
increases EQT’s core undeveloped Marcellus acreage by 29%. The
acquisition also includes drilling rights on an estimated 53,000 net
acres that are undeveloped and prospective for the deep Utica.
Assets include 31 Marcellus wells, 24 of which are currently producing –
three complete, not online and four drilled, not complete. The resource
potential of the acreage is estimated at 9.2 Tcf; and 87% of the acreage
is either held by production or has lease expiration terms that extend
beyond 2018. The acreage has an 84% net revenue interest.
There is no change to the Company’s 2016 CAPEX or Operating Cash Flow
guidance.
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.
Cautionary Statements
The United States Securities and Exchange Commission (SEC) permits oil
and gas companies, in their filings with the SEC, to disclose only
proved, probable and possible reserves that a company anticipates as of
a given date to be economically and legally producible and deliverable
by application of development projects to known accumulations. We use
certain terms, such as “resource potential”, that the SEC’s guidelines
prohibit us from including in filings with the SEC. These measures are
by their nature more speculative than estimates of reserves prepared in
accordance with SEC definitions and guidelines and accordingly are less
certain.
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 production and sales volumes,
capital expenditures, operating cash flows, reserves, the number of
drilling locations and related average lateral length, estimated Utica
acres, EQT’s ability to extend the lateral length of existing drilling
locations as a result of the transaction, well costs and economics, and
the allocation of the purchase price among undeveloped acreage and
producing wells. 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.
