PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) (EQT) announced that it has entered into a
definitive agreement to sell approximately 2.5 million non-core, net
acres in the Huron Play located in Southern Appalachia to Diversified
Gas and Oil PLC, for $575 million cash. The transaction also relieves
EQT of approximately $200 million of plugging and other liabilities
associated with the assets. EQT will retain the deep drilling rights
across the acreage. The transaction is subject to customary closing
conditions and is expected to close in late July 2018. Proceeds from the
sale will be used to reduce EQT's net-debt.
Assets include:
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approximately 2.5 million non-core, net acres in Kentucky, Virginia,
and southern West Virginia – with a 92% net revenue interest
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approximately 12,000 wells with current net production of
approximately 200 MMcfe per day
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1.6 Tcfe total net proved developed reserves
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6,400 miles of low-pressure gathering lines and 59 compression stations
The transaction also includes eight EQT field locations, as well as the
transfer of approximately 250 employees who work in or support
production, pipeline, compression, and measurement operations.
The 2018 operational and financial guidance will be updated to reflect
the impact of the transaction in the second quarter earnings report
scheduled for July 26, 2018.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and transmission.
With more than 130 years of experience and a long-standing history of
good corporate citizenship, EQT is the largest producer of natural gas
in the United States. As a leader in the use of advanced horizontal
drilling technology, EQT is committed to minimizing the impact of
drilling-related activities and reducing its overall environmental
footprint. Through safe and responsible operations, EQT is helping to
meet our nation’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 owns the general partner interest
and a 91% limited partner interest in EQT GP Holdings, LP; as well as
the general partner interest and a 28% limited partner interest in Rice
Midstream Partners LP. EQT GP Holdings, LP owns the general partner
interest, all of the incentive distribution rights, and a portion of the
limited partner interest in EQT Midstream Partners, LP; as well as all
of the incentive distribution rights in Rice Midstream Partners LP.
Visit EQT Corporation at www.EQT.com;
and to learn more about EQT’s sustainability efforts, please visit https://csr.eqt.com.
Cautionary Statements
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 of plans, strategies, objectives
and growth and anticipated financial and operational performance of EQT
and its subsidiaries, including EQT’s ability to complete, and the
timing of the closing of, the transaction, the amount of liability
savings to EQT resulting from the transaction and changes in guidance
regarding EQT’s projected 2018 sales volumes. These statements 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 risks discussed in EQT’s most recent Annual Report on
Form 10-K and other filings 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.
