Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
EQT Completes Long-Awaited $5.2 Billion Acquisition of Tug Hill and XcL Midstream
09/07/2023
EQT disbursed roughly $2.4 billion in cash and issued 49.6 million shares of its common stock to acquire the Tug Hill and XcL Midstream assets.
On August 22, EQT Corp. announced the completion of its long-delayed acquisition of XcL Midstream, following extensive Federal Trade Commission (FTC) reviews. The final purchase, post-price adjustments, consisted of about $2.4 billion in cash and 49.6 million EQT common shares. The cash component was financed through a $1.25 billion term loan, $1 billion from existing cash reserves, and a previously escrowed $150 million deposit.
FTC Clears EQT's Deal with Quantum
Shortly after gaining FTC approval, which addressed antitrust issues between EQT and Quantum Energy Partners, EQT has finalized its acquisition of Tug Hill and XcL Midstream. A consent order ensures both companies maintain confidentiality and avoid competitive conflicts, according to an FTC release on August 16.
EQT CEO Toby Z. Rice states that the merger, first revealed on July 22, integrates the teams of Tug Hill and XcL Midstream into EQT. He further highlights that the acquired assets are among the most cost-efficient in the Appalachian region, promising to reduce EQT's NYMEX free cash flow breakeven price by around $0.15 per MMBtu. Rice also sees potential annual synergies exceeding $80 million, which could further trim corporate expenses.
Tug Hill's upstream assets currently have an average output of around 800 million cubic feet per day, with liquids yield of 20%.
XcL Midstream contributes 145 miles of owned and operated midstream gathering systems, offering connections to all significant long-haul interstate pipelines in southwest Appalachia. EQT intends to offer updated financial projections in line with its third-quarter earnings report.
About EQT Corporation
EQT Corporation is a premier independent natural gas producer, primarily active in the Marcellus and Utica Shales within the Appalachian Basin. Committed to responsible development, the company aims to be the preferred operator for all stakeholders. EQT prioritizes operational efficiency, technology, and sustainability to produce reliable, low-cost, and environmentally responsible energy. With a deep-rooted focus on safety and environmental stewardship, EQT is driven by core values of trust, teamwork, heart, and evolution.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
WhiteHawk Energy Secures $100M Finance Facility for Core Natural Gas Asset Acquisition
WhiteHawk Energy LLC completed its second Haynesville Shale mineral and royalty acquisition of the year, spanning northwestern Louisiana and eastern Texas. WhiteHawk also secured a $100 million acquisition finance facility from an undisclosed "top tier institution." The company will utilize $20 million from this facility to fund the Haynesville purchase from Mesa Minerals Partners II LLC
Triple Advantage Vital Energy's $1 Billion M&A Enhances Permian Portfolio, Cash Flow
Vital Energy, focused on the Permian Basin, plans quick debt reduction after securing $1.165 billion in deals, adding key Midland and Delaware basin inventory.
Agrivoltaics: Merging Solar Power and Farming Across the USA – Promise, Problems, and the Path Ahead
Agrivoltaics, a combination of agriculture and solar power generation on the same land, is quickly gaining traction across the United States as a solution to balancing the demand for renewable energy and the need to preserve farmland. As the country pushes toward its goal of achieving net-zero emissions, solar power is expected to play a significant role in this transition. However, concerns about the loss of agricultural land have led to the rise of agrivoltaics, where farming and solar energy production coexist.
The 2024 Atlantic hurricane season has hit Florida hard, with Hurricanes Helene and Milton exposing the vulnerabilities in the state's energy infrastructure. As Florida grapples with the aftermath of these back-to-back storms, the damage to oil, gas, and energy supplies has created severe disruptions, leaving residents and industries struggling to recover.
California has long been at the forefront of renewable energy in the United States, from its vast solar farms to its growing battery storage capacities. But beneath the headlines of a "clean energy revolution" lies a complex reality—one shaped by ambitious targets, grid challenges, and the everyday experiences of Californians grappling with rising energy costs and increasing grid instability. As California pushes towards its 100% clean energy goal, the road is full of both promise and pitfalls.