The US natural gas producer EQT has signed a purchase agreement to acquire its privately held competitor THQ Appalachia, a Tug Hill operated company, in a US$5.2bn deal that will allow EQT to expand holdings in the Marcellus shale gas, Utica/Point Pleasant, and Upper Devonian plays in the US state of West Virginia. With this purchase, EQT expects to increase its gas production by nearly 23 mcm/day (8 bcm/year).
The purchase will also incorporate Tug Hill’s XcL Midstream LLC, which owns roughly 95 miles (153 km) of gas pipelines connecting to interstate systems. The deal is expected to close by the fourth quarter of 2022, pending some conditions.
In 2021, EQT bought assets from Alta Resources Development for US$2.9 billion, which allowed the company to boost its gas production by 10 bcm/year. The company also acquired Chevron Corporation’s assets in the Appalachian region for US$735m in 2020. EQT is one of the largest US gas producers, with a total production surpassing 50 bcm/year as of 2021.