View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
September 6, 2022

EQT in advance talks to acquire THQ Appalachia I for $4bn

Backed by Tug Hill and Quantum, THQ Appalachia I operates in the Utica, Marcellus, and Upper Devonian plays.

US-based natural gas producer EQT is in advanced talks to purchase exploration and production company THQ Appalachia I (THQA) for approxiamtely $4bn including debt, reported Reuters, citing people familiar with the matter.

Backed by Tug Hill Operating and private equity firm Quantum Energy Partners, THQ Appalachia I focuses on assets in the Marcellus, Utica/Point Pleasant, and Upper Devonian plays in West Virginia.  

The firm, which owns a significant leasehold position in the core of the Marshall and Wetzel counties in West Virginia, has a net production capacity of approximately 760 million cubic feet per day.

A potential transaction involving the sale of THQ Appalachia I and some midstream assets could be valued at nearly $5.2bn, reported Bloomberg News, citing people with knowledge of the matter.

The sale could also include Tug Hill’s XcL Midstream, a pipeline company engaged in transporting THQ Appalachia’s gas to market. XcL Midstream is led by Tug Hill CEO Michael Radler.

Upon completion of successful negotiations, EQT is expected to sign an agreement with THQ Appalachia’s owners as early as this week, the sources said.

The talks, however, could still end without signing an agreement between the parties, reported Bloomberg News.

In June 2022, Reuters reported that Tug Hill Operating and Quantum Energy Partners were exploring the sale of THQ Appalachia I and appointed an investment bank to execute the sale process.

Last year, EQT acquired another natural gas producer, Alta Resources, in a deal worth $2.9bn, including debt.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Offshore Technology