EQT Corp (EQT) News - Feb 21

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dan_s
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EQT Corp (EQT) News - Feb 21

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By Paul J. Gough – Reporter, Pittsburgh Business Times
Feb 20, 2023

EQT Corp. is working with federal regulators and providing more information over its planned $5.2 billion acquisition of Tug Hill and XcL Midstream

There's no timeline yet for the deal to be completed. EQT CEO Toby Z. Rice said during the company's fourth-quarter earnings call Thursday that it was responding to the questions given to it by the Federal Trade Commission.

"We remain committed to closing the acquisition," Rice said.

EQT (NYSE: EQT) and the seller, Houston-based private equity firm Quantum Energy Partners, had planned for the deal to be done by the end of last year. But the purchase agreement, announced Sept. 6, had to be extended until Dec. 29, 2023, after the Federal Trade Commission asked for more information about the deal before letting it go through.

The deal is for $2.6 billion in cash and 55 million shares in EQT.

The pending acquisition of Tug Hill, a large privately owned driller with operations in West Virginia, along with pipeline company XcL Midstream, will complement EQT's existing operations, which are near Tug Hill's. It will also give EQT more flexibility when it comes to pipelines; the company saw less gas produced and sold in the latter half of 2022 and into 2023 due to third-party pipeline issues. The production alone will increase by 800 million cubic feet per day and what EQT says will be about 11 years of potential future drilling spots.

EQT will have about 6.1 million cubic feet per day of natural gas and natural gas liquids at the end of the transaction, up from 5.3 million cubic feet per day now. EQT is already the largest independent natural gas producer in the United States.

The acquisition will also, EQT said, end up lowering the driller's breakeven gas price by 15 cents per million British thermal unit due to efficiencies.
Dan Steffens
Energy Prospectus Group
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