EQT completes acquisition of Tug Hill and XcL Midstream
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
EQT Corporation announced on 22 August that it has closed its previously announced acquisition of THQ Appalachia I Midco, LLC and THQ-XcL Holdings I Midco, LLC.
Final consideration after purchase price adjustments was comprised of approximately US$2.4 billion of cash and 49.6 million shares of EQT common stock. EQT funded the cash portion of the consideration with US$1.25 billion of term loan borrowings, US$1 billion of cash on hand and the US$150 million cash deposit previously held in escrow.
Toby Z. Rice, President and CEO, said, "We are excited to complete this strategic transaction and welcome the Tug Hill and XcL Midstream teams to EQT. These assets have among the lowest breakeven prices in Appalachia, and should reduce our pro forma NYMEX free cash flow breakeven price by approximately US$0.15/MMBtu, providing greater resiliency to our business moving forward. We also see the potential for more than US$80 million per year of synergies, which could drive additional reductions to our corporate cost structure over time."
Tug Hill's upstream assets are currently producing approximately 800 million cubic feet of gas equivalent per day with a 20% liquids yield. XcL Midstream's gathering and processing assets add 145 miles of owned and operated midstream gathering systems that connect to every major long-haul interstate pipeline in southwest Appalachia. The company plans to provide pro forma financial guidance with its third quarter earnings results.
Read the article online at: https://www.worldpipelines.com/business-news/30082023/eqt-completes-acquisition-of-tug-hill-and-xcl-midstream/
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