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EQT Corporation (EQT) to Purchase Marcellus Acres for $527M
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Integrated energy player EQT Corporation (EQT - Free Report) recently declared that it has succeeded in winning a bankruptcy auction bid to purchase 53,400 net acres of land in the core Marcellus area. The transaction is anticipated to complete on Feb 28.
Notably, EQT Corporation is likely to buy the acres for approximately $527 million from Stone Energy Corporation . The acquisition comprises drilling rights from 44,100 net acres of land in the Utica shale along with present natural gas production of roughly 80 MMcfe (million cubic feet equivalent) every day. Location wise, Utica is situated a few thousand feet below the Marcellus Shale.
The company added that to-be-purchased properties are inside its core operating regions that are liquid rich. Most importantly, the areas will complement the adjacent operations of EQT Corporation. With the acquisition, the company will likely have 173 new Marcellus areas, comprising 174 Marcellus wells. Out of the total, 123 wells have been developed while the remaining 51 are in progress.
Investors should also know that the assets also include gathering pipeline – covering 20 miles – along with 32,000 acres of area located outside the core operating locality of EQT Corporation.
Based in Pittsburgh, PA, EQT Corporation’s business comprises natural gas production in the Appalachian region and also gathering and transportation activities. In each of the last four quarters, the company was able to beat the Zacks Consensus Estimate. The company has an average positive earnings surprise of 163.71%.
Moreover, EQT Corporation has a strong balance sheet. This is evidenced by the company’s better Current Ratio – measure of liquidity – than other energy players. The Current Ratio for EQT Corporation is 3.47 compared with 3 for Concho Resources Inc. , 3.26 for QEP Resources Inc. and 2.91 for Southwestern Energy Company (SWN - Free Report) .
However, the company underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry in the last six months. During the aforesaid period, EQT Corporation shares fell more than 6% compared with 7.2% increase for the broader industry.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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EQT Corporation (EQT) to Purchase Marcellus Acres for $527M
Integrated energy player EQT Corporation (EQT - Free Report) recently declared that it has succeeded in winning a bankruptcy auction bid to purchase 53,400 net acres of land in the core Marcellus area. The transaction is anticipated to complete on Feb 28.
Notably, EQT Corporation is likely to buy the acres for approximately $527 million from Stone Energy Corporation . The acquisition comprises drilling rights from 44,100 net acres of land in the Utica shale along with present natural gas production of roughly 80 MMcfe (million cubic feet equivalent) every day. Location wise, Utica is situated a few thousand feet below the Marcellus Shale.
The company added that to-be-purchased properties are inside its core operating regions that are liquid rich. Most importantly, the areas will complement the adjacent operations of EQT Corporation. With the acquisition, the company will likely have 173 new Marcellus areas, comprising 174 Marcellus wells. Out of the total, 123 wells have been developed while the remaining 51 are in progress.
Investors should also know that the assets also include gathering pipeline – covering 20 miles – along with 32,000 acres of area located outside the core operating locality of EQT Corporation.
Based in Pittsburgh, PA, EQT Corporation’s business comprises natural gas production in the Appalachian region and also gathering and transportation activities. In each of the last four quarters, the company was able to beat the Zacks Consensus Estimate. The company has an average positive earnings surprise of 163.71%.
Moreover, EQT Corporation has a strong balance sheet. This is evidenced by the company’s better Current Ratio – measure of liquidity – than other energy players. The Current Ratio for EQT Corporation is 3.47 compared with 3 for Concho Resources Inc. , 3.26 for QEP Resources Inc. and 2.91 for Southwestern Energy Company (SWN - Free Report) .
However, the company underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry in the last six months. During the aforesaid period, EQT Corporation shares fell more than 6% compared with 7.2% increase for the broader industry.
Presently, EQT Corporation carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>