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EQT Corp. (NYSE:EQT) said Monday it agreed to sell a 40% stake in its non-operated natural gas assets in northeast Pennsylvania to Equinor (EQNR) in exchange for $500M in cash and some upstream and midstream assets.
The assets EQT (EQT) will receive in the deal consist of 26K net acres in Ohio with estimated 2025 net production of 135M cfe/day directly offsetting EQT-operated acreage, 10K net acres in Pennsylvania with estimated 2025 net production of 15M cfe/day in existing EQT-operated assets, the remaining 16.25% ownership in EQT-operated gathering systems servicing core operated acreage in Pennsylvania, and a gas buy-back agreement where Equinor (EQNR) will purchase gas from EQT at a premium to in-basin pricing through Q1 2028.
EQT (EQT) said the deal marks the start of its divestiture program, "bringing in over $1.1B, including synergies and development plan optimization, for 40% of our non-operated assets, while retaining gas price upside," adding the company plans to sell the remaining portion of its non-operated assets in northeast Pennsylvania.
For Equinor (EQNR), the transaction means it has fully exited all operated positions onshore U.S.