Deal Insight
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.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
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Deal analysis
- Marcellus modeling assumptions
- Utica and Upper Devonian modeling assumptions
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Upsides and risks
- Upsides
- Downsides
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Strategic rationale
- EQT Corporation
- Stone Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes 8 images and tables including:
- Executive summary: Table 1
- EQT's recently acquired acreage
- Upstream assets: Table 1
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
What's included
This report contains:
