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EQT Corp to Buy Additional Marcellus Acreage for $683M
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EQT Corporation (EQT - Free Report) recently entered into two separate agreements to acquire additional Marcellus acreage worth $683 million. The transactions are anticipated to complete by the end of this year.
The company has signed a deal with Trans Energy and its joint venture partner – Republic Energy – to purchase 42,600 net acres in the Marcellus Shale for a consideration of roughly $513 million. The properties to be bought currently have a natural gas production capacity of roughly 42 million cubic feet equivalent per day (MMcfe/D). The acres include 250 undeveloped locations and 42 Marcellus wells, of which 33 wells currently have a production rate of 42 MMcfe/D.
According to the second deal, EQT Corporation will likely pay $170 million to a third party for 17,000 net acres in the region. The acreage to be purchased under this deal has a natural gas output of roughly 2 MMcfe/D. The acres comprise 97 undeveloped areas and two Marcellus wells that currently have a production rate of 2 MMcfe/D.
EQT Corporation is expected to finance the deals with cash on hand. The company believes that the completion of the two acquisitions will significantly enhance its core development areas. The company added that during 2016 it added roughly 143,000 acres to its core Marcellus position, including the recent deals. Most importantly, the to-be-acquired acres in the Marcellus areas are contiguous with the company’s existing resources and will also compliment the company’s operations. Hence, these properties will create synergies by reducing operating cost.
Based in Pittsburgh, PA, EQT Corporation is an integrated energy firm which currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include Helix Energy Solutions Group, Inc. (HLX - Free Report) , EQT Midstream Partners, LP and Ultra Petroleum Corp. . Each of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters.
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% in the current year.
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% in the current year.
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EQT Corp to Buy Additional Marcellus Acreage for $683M
EQT Corporation (EQT - Free Report) recently entered into two separate agreements to acquire additional Marcellus acreage worth $683 million. The transactions are anticipated to complete by the end of this year.
The company has signed a deal with Trans Energy and its joint venture partner – Republic Energy – to purchase 42,600 net acres in the Marcellus Shale for a consideration of roughly $513 million. The properties to be bought currently have a natural gas production capacity of roughly 42 million cubic feet equivalent per day (MMcfe/D). The acres include 250 undeveloped locations and 42 Marcellus wells, of which 33 wells currently have a production rate of 42 MMcfe/D.
According to the second deal, EQT Corporation will likely pay $170 million to a third party for 17,000 net acres in the region. The acreage to be purchased under this deal has a natural gas output of roughly 2 MMcfe/D. The acres comprise 97 undeveloped areas and two Marcellus wells that currently have a production rate of 2 MMcfe/D.
EQT Corporation is expected to finance the deals with cash on hand. The company believes that the completion of the two acquisitions will significantly enhance its core development areas. The company added that during 2016 it added roughly 143,000 acres to its core Marcellus position, including the recent deals. Most importantly, the to-be-acquired acres in the Marcellus areas are contiguous with the company’s existing resources and will also compliment the company’s operations. Hence, these properties will create synergies by reducing operating cost.
Based in Pittsburgh, PA, EQT Corporation is an integrated energy firm which currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include Helix Energy Solutions Group, Inc. (HLX - Free Report) , EQT Midstream Partners, LP and Ultra Petroleum Corp. . Each of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT CORP Price
EQT CORP Price | EQT CORP Quote
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters.
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% in the current year.
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% in the current year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>