Chevron`s assets include about 100 work-in-progress wells, with a net production capacity of 450 million cubic feet per day, EQT said. In addition, the slate researcher will receive a 31% interest in the pipeline company Laurel Mountain Midstream. (Bloomberg) — EQT Corp. has agreed to buy Chevron Corp.`s Appalachian slate plants for $735 million as the largest U.S. natural gas producer benefits from a slump in the industry to grow. The acquisition is the latest in a series of recent transactions in which shale drillers are trying to evolve to cope with a fall in commodity prices that has rendered much of the sector unprofitable. « This acquisition is a natural extension of EQT`s dominant position in the southwestern heart of Marcellus and complements our already impressive asset base, » Said Toby Rice, EQT`s Chief Executive Officer, in the statement. According to the Natural Gas Supply Association, EQT is already the largest U.S. gas supplier and produces 44% more than its next competitor Exxon Mobil Corp. EQT pumped about 4 billion cubic feet per day in the first quarter. The deal is expected to close by the end of the year, EQT said in a statement on Tuesday. Chevron has been trying to unload its Appalachian gas stocks since late 2019, when it recorded an $11 billion writedown for that asset and others amid an increase in inland gas inflows and the crater price for furnace and fuel from power plants. CNX fell 1.6% after the announcement of the agreement with Chevron.
EQT stated that it could finance the agreement with cash, a revolving credit facility or a separate issue of 23 million common shares. EQT fell 3% to $15.67 in New York at 7:59 p.m. .m. Chevron fell 0.6%. EQT has also made a proposal to acquire rival CNX Resources Corp., people familiar with the deal told Bloomberg News last week. No final decision has yet been made and EQT may decide not to pursue a possible agreement, he said.