EQT to sell some natgas assets in Pennsylvania to Equinor USA
Reuters
Published Apr 15, 2024 08:14
Updated Apr 15, 2024 12:46
(Reuters) -EQT will sell 40% interest in its non-operated natural gas assets in northeast Pennsylvania to Equinor USA in exchange for Equinor's onshore asset in the Appalachian basin and $500 million in cash, the companies said on Monday.
Non-operating positions give holders a cut from the hydrocarbons sold without taking charge of drilling or other operations, although they must contribute their share of costs.
Natural gas prices have plunged to three-year lows, forcing producers to curb output and spending on drilling activity, especially in the Marcellus and Utica shale regions.
Reuters reported last year that EQT was exploring a sale of a portfolio of minority stakes in wells in Pennsylvania's Marcellus shale formation.
"We plan to opportunistically divest the remaining portion of our non-operated assets in northeast Pennsylvania," EQT CEO Toby Rice said on Monday.
EQT's plan to exit the position comes as the company tries to accelerate cutting its $5.9 billion debt pile and boost shareholder returns.
The company said on Monday it expects the assets acquired from Equinor to generate nearly $75 million in free cash flow in 2025.
"This (deal) also means that we have now fully exited all operated positions onshore U.S.," Philippe Mathieu, executive vice president for Exploration and Production International at Equinor, said.
Norway's Equinor had been reviewing assets to exit several countries, including the United States, looking to focus on offshore operations instead of onshore ones.
EQT's stock was marginally down, while Equinor shares ended the day 3% lower.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.