US-based natural gas production company EQT is considering divesting minority stakes in oil and gas assets in Pennsylvania to raise more than $3bn, reported Reuters, citing people familiar with the matter.

The company is working with an undisclosed investment bank on the process to sell non-operating interests in wells located in Pennsylvania’s Marcellus shale formation.

The assets considered for sale are located across Northeast Pennsylvania and are operated by Chesapeake Energy. These properties have current production of around 700 million cubic feet per day.

Currently, EQT owns a 25% non-operating interest in the assets. Other parties also hold stakes.

According to sources, EQT could opt not to sign a sale deal.

Most of the assets, which are now up for sale, were assumed by EQT as part of a $3bn takeover of Alta Resources in 2021.

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By GlobalData

The sale forms part of EQT’s efforts to reduce its debt of $5.9bn and boost shareholder returns.

The energy sector in the US has witnessed a surge in consolidation. US oil giants Exxon Mobil and Chevron have disclosed acquisitions, worth more than $100bn in total, in the last two months alone.

Earlier this year, EQT acquired upstream assets from THQ Appalachia I (Tug Hill) and the gathering and processing assets of THQ-XcL (XcL Midstream).

XcL Midstream and Tug Hill are backed by equity commitments from funds managed by private equity firm Quantum Energy Partners.

In September 2023, Commonwealth LNG signed an agreement with EQT for liquefaction services at its facility in Cameron, Louisiana.

Located on the Calcasieu River in the Gulf of Mexico, near Cameron, the proposed liquefied natural gas export facility will have a capacity of 9.3 million tonnes per annum.