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<\/p>\nThe natural gas production company EQT Corporation is to acquire all the membership interests in Alta Resource Development\u2019s upstream and midstream subsidiaries for approximately $3bn.<\/p>\n
This acquisition will add a highly prolific inventory with superior well economics in the core of the Northeast Marcellus, integrated midstream assets and mineral ownership which will drive high margin operated development, and direct exposure to the geologic core through a non-operated position.<\/p>\n
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EQT, whose operations are focused on the cores of the Marcellus and Utica Shales in the Appalachian Basin, says the deal \u201cfits firmly\u201d within its strategic acquisition framework, while also establishing a significant and strategic position in the core of the Northeast Marcellus.<\/p>\n
President and CEO Toby Rice stated, \u201cIn addition to increasing our long-term optionality, we believe this transaction accelerates both our path back to investment grade metrics and our shareholder return initiatives. We look forward to applying our differentiated modern operating model to maximize the prolific value embedded in these premier assets.\u201d<\/p>\n
Approximately one billion cubic feet equivalent (BCFE) per day of high-margin net production is expected to bolster EQT\u2019s free cash flow profile by adding approximately $300m – $400m of annual free cash flow and a total of approximately $2bn of free cash flow through 2026, an improvement of approximately 55% compared to its pre-transaction outlook.<\/p>\n
The transaction is expected to close in the third quarter of 2021, with an effective date of January 1, 2021.<\/p>\n