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EQT Completes Long-Awaited $5.2 Billion Acquisition of Tug Hill and XcL Midstream
09/07/2023
EQT disbursed roughly $2.4 billion in cash and issued 49.6 million shares of its common stock to acquire the Tug Hill and XcL Midstream assets.
On August 22, EQT Corp. announced the completion of its long-delayed acquisition of XcL Midstream, following extensive Federal Trade Commission (FTC) reviews. The final purchase, post-price adjustments, consisted of about $2.4 billion in cash and 49.6 million EQT common shares. The cash component was financed through a $1.25 billion term loan, $1 billion from existing cash reserves, and a previously escrowed $150 million deposit.
FTC Clears EQT's Deal with Quantum
Shortly after gaining FTC approval, which addressed antitrust issues between EQT and Quantum Energy Partners, EQT has finalized its acquisition of Tug Hill and XcL Midstream. A consent order ensures both companies maintain confidentiality and avoid competitive conflicts, according to an FTC release on August 16.
EQT CEO Toby Z. Rice states that the merger, first revealed on July 22, integrates the teams of Tug Hill and XcL Midstream into EQT. He further highlights that the acquired assets are among the most cost-efficient in the Appalachian region, promising to reduce EQT's NYMEX free cash flow breakeven price by around $0.15 per MMBtu. Rice also sees potential annual synergies exceeding $80 million, which could further trim corporate expenses.
Tug Hill's upstream assets currently have an average output of around 800 million cubic feet per day, with liquids yield of 20%.
XcL Midstream contributes 145 miles of owned and operated midstream gathering systems, offering connections to all significant long-haul interstate pipelines in southwest Appalachia. EQT intends to offer updated financial projections in line with its third-quarter earnings report.
About EQT Corporation
EQT Corporation is a premier independent natural gas producer, primarily active in the Marcellus and Utica Shales within the Appalachian Basin. Committed to responsible development, the company aims to be the preferred operator for all stakeholders. EQT prioritizes operational efficiency, technology, and sustainability to produce reliable, low-cost, and environmentally responsible energy. With a deep-rooted focus on safety and environmental stewardship, EQT is driven by core values of trust, teamwork, heart, and evolution.
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WhiteHawk Energy Secures $100M Finance Facility for Core Natural Gas Asset Acquisition
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WhiteHawk Energy LLC completed its second Haynesville Shale mineral and royalty acquisition of the year, spanning northwestern Louisiana and eastern Texas. WhiteHawk also secured a $100 million acquisition finance facility from an undisclosed "top tier institution." The company will utilize $20 million from this facility to fund the Haynesville purchase from Mesa Minerals Partners II LLC
Kingston Midstream Secures Deal to Acquire Clearwater Assets from Rangeland Midstream Canada
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Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
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The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.
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Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.