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.