EQT Corp, a major player in the northeastern Pennsylvania’s natural gas industry, recently announced its plans to offload the remaining 60% share in its non-operated Northern Marcellus resources. This move follows the company’s hefty $5.45 billion acquisition of Equitrans Midstream, and aims to alleviate financial obligations.
Earlier this year, EQT had a successful partial stake sell-off as a continuation of their divestiture strategy. This step, linked to an earlier agreement with Equinor, facilitated not only a debt reduction, but an increase in the company’s operational performance. The capital from the sale is earmarked for reinvestment in core operations and future projects.
The previous deal with Equinor saw EQT diversify further, acquiring Equinor’s Marcellus and Utica assets based in southeastern Ohio. Subsequently, Equinor acquired a sizable stake in non-operated Northern Marcellus interests, indicating strategic decisions to optimize market standing for both organisations.
The agreement, valued at approximately $1.1 billion, allowed EQT to secure over 36,000 net acres across two counties.
EQT’s strategy for financial relief post Equitrans acquisition
The deal had Equinor exiting their operated onshore U.S territories, solidifying EQT’s ascension as a formidable force in the domestic natural gas industry, and providing an estimated 600 potential drilling locations.
From the sale to Equinor, EQT managed to clear $600 million of its 2025 senior notes during Q2 this year. As a result, EQT’s total debt marginally reduced to around $5 billion, strengthening its financial standing.
The sell-off announcement coincides with EQT’s acquisition of Equitrans, the owner of the delayed Mountain Valley Pipeline project. EQT’s future plans include reducing its debt through asset sales and organic free cash flow. The organization is also keen on achieving sustainability goals, strengthening its market standing through strategic diversification. The recent moves align with EQT’s long-term vision of creating sustainable shareholder value.
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Author: Amna Faryad
