EQT’s Northeast Pennsylvania divestiture to Equinor is the second deal between the two companies this year following a large swap of Marcellus assets in April. (Source: Shutterstock.com)
EQT Corp. has entered into an agreement with Equinor USA Onshore Properties Inc. and Equinor Natural Gas LLC to sell the company's remaining interest in its non-operated natural gas assets in Northeast Pennsylvania.
Equinor will pay a cash consideration of $1.25 billion for the non-op assets, according to EQT’s Oct. 29 earnings report. The transaction price is subject to customary purchase price adjustments. EQT intends to use proceeds toward debt repayment related to its acquisition of Equitrans Midstream Corp.
The deal represents approximately 350 MMcf/d of forecasted 2025 net production, EQT said.
Equinor said that under the agreement, it is acquiring 100% of EQT’s remaining working interest primarily operated by Expand Energy.
The transaction will increase cash flow from the international portfolio by adding natural gas volumes with low carbon intensity emissions from production, Equinor said in an Oct. 29 press release.
“The U.S. is a core country for Equinor, where we have shaped a robust onshore and offshore oil and gas portfolio, alongside our activities in offshore wind, battery storage, and low-carbon value chains,” says Mathieu.
The deal is the second between the two companies this year.
In April, the two companies agreed to a large-scale acreage swap in the Appalachian Basin.
Under the terms of the transaction, Equinor agreed to sell 100% of its interest in and operatorship of the Marcellus and Utica shales in southeastern Ohio. In exchange, EQT provided 40% non-operated interest in the Northern Marcellus in Pennsylvania. With the deal, Equinor fully exited all operated positions onshore the U.S.
In that transaction, Equinor paid EQT $500 million in cash to “balance the overall transaction,” the company said.
The Oct. 29 transaction has an effective date of Dec. 31, 2024, and is expected to close in fourth-quarter 2024, subject to required regulatory approvals and clearances.
In the deal announced Oct. 29, Jefferies LLC acted as EQT’s financial adviser. Kirkland & Ellis LLP is serving as EQT's legal counsel.
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