EQT Corp., the largest US natural gas producer, agreed to acquire a privately held competitor in a $5.2 billion deal to expand holdings in the prolific Marcellus shale.
The Pittsburgh-based driller will take over THQ Appalachia I LLC, a Tug Hill-operated company that’s backed by Quantum Energy Partners, in a cash and equity transaction, the company said in a statement on Tuesday. The purchase will also incorporate Tug Hill’s XcL Midstream LLC, which owns roughly 95 miles of gas pipelines connecting to interstate systems.
It’s the latest in a series of acquisitions made by EQT over the past couple of years as the company seeks to consolidate holdings across the Marcellus in the northeast US. Led by Chief Executive Officer Toby Rice, the company last year bought assets from Alta Resources Development LLC for about $2.9 billion. It also acquired Chevron Corp.’s assets in Appalachia for $735 million in 2020.
The $5.2 billion purchase of Tug Hill assets consists of $2.6 billion in cash and about $2.6 billion in EQT common stock, with Quantum set to become a “core” shareholder of EQT after the transaction is concluded.
Read more: BNN Bloomberg
