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7 Pages

EQT buys Marcellus assets in bankruptcy auction for US$527 million


EQT buys Marcellus assets in bankruptcy auction for US$527 million

Report summary

EQT Corporation is buying 53,400 core Marcellus net acres from Stone Energy for US$527 million. We value this deal slightly higher than the deal consideration. The acquired position falls in EQT's core development area, where EQT has been aggressively drilling wells to increase production. 2016 was the company's seventh straight year of more than 25% sales volume growth and this newly acquired position will allow it to continue on that trend. EQT has been vocal about its intent to increase value to shareholders through two themes: consolidation and innovation. In 2016, the company acquired 145,500 net Marcellus acres in its core development area, allowing it to extend the average lateral length of horizontals by 600 feet. This move led to a reserves increase of 5.3 tcfe and improved well economics.

What's included?

This report includes 1 file(s)

  • EQT buys Marcellus assets in bankruptcy auction for US$527 million PDF - 5.72 MB 7 Pages, 7 Tables, 1 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Marcellus modeling assumptions
    • Utica and Upper Devonian modeling assumptions
  • Upsides and risks
    • Upsides
    • Downsides
  • Strategic rationale
    • EQT Corporation
    • Stone Energy
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • EQT's recently acquired acreage
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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