Energy company EQT has signed a merger agreement to acquire all outstanding common stock shares of US-based natural gas and oil company Rice Energy in a deal valued at approximately $6.7bn.
Under the agreement, EQT will offer 0.37 shares of EQT common stock and $5.30 in cash per share of Rice common stock, in addition to assuming or refinancing around $1.5bn of net debt and preferred equity.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
EQT president and CEO Steve Schlotterbeck said: "This transaction brings together two of the top Marcellus and Utica producers to form a natural gas operating position that will be unmatched in the industry.
“We will now shift our focus from acquisitions to integration as we work to drive higher capital efficiency through longer laterals, reduce per unit operating costs through operational and G&A synergies, improve our sales portfolio by expanding access to premium markets and deliver increased value to our shareholders.”
The merger will take the total Marcellus shareholdings to 670,000.
EQT noted that since last year, it has acquired more than 485,000 acres in the core of the Marcellus.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFollowing the closure of the acquisition, EQT will also obtain Rice’s midstream assets, including 100% of the general partner incentive distribution rights and 28% of the limited partner interests in Rice Midstream Partners, and the retained midstream assets currently held at Rice.
The company added that the retained midstream assets are expected to generate about $130m of earnings before interest, tax, depreciation and amortisation (EBITDA) next year.
The transaction has been approved by the boards of directors of both companies.
Subject to the approval of shareholders, in addition to certain customary regulatory and other closing conditions, completion of the transaction is scheduled in the fourth quarter of this year.
