EQT completes $6.7bn acquisition of Rice Energy

US-based petroleum and natural gas exploration company EQT has completed the previously announced acquisition of all of the outstanding shares of Rice Energy for $6.7bn.

The agreement, which also includes around $1.5bn of net debt and preferred equity, was signed in June this year.

The acquired acreage is said to be contiguous with EQT’s existing acreage position, leading to an expected 50% increase in average lateral lengths for future wells located in Greene and Washington Counties in Pennsylvania.

EQT president and CEO Steve Schlotterbeck said: “With the closing of the transaction, we are combining two of the leading operators in the Appalachian Basin to create an even stronger company that is positioned to deliver greater returns to shareholders through operating efficiencies and improved overall well economics.

“This transaction complements our production and midstream businesses and will deliver significant operational synergies to help us maintain our status as one of the lowest-cost operators in the US.

“The EQT Board and management team have taken considerable steps to strengthen the company’s platform and we look forward to identifying additional opportunities to maximise value for all EQT shareholders.”

The company will also acquire Rice’s midstream assets, including a 92% interest in Rice Midstream GP Holdings.

Following the acquisition, the company now has 670,000 net core acres in Marcellus, 149,000 in Upper Devonian, 616,000 in PA & WV Utica, and 65,000 in OH Utica.