EQT Reportedly Eyes $3B Marcellus Shale Selloff - Aiming High For Financial Revival?

EQT Corporation EQT is reportedly considering the divestiture of various minority interests in wells located within Pennsylvania's Marcellus shale region, potentially valued at over $3 billion.

EQT is working with an investment bank to auction the stakes, known in the energy industry as "non-operating" interests, Reuters reported, citing anonymous sources. 

Non-operating positions give holders a cut from the hydrocarbons sold without taking control of drilling or other operations, although they must contribute their share of costs, the Reuters report added.

EQT is aiming to divest its stakes in assets distributed throughout Northeast Pennsylvania, which currently produce approximately 700 million cubic feet of gas per day, the report read.

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Chesapeake Energy Corporation CHK operates the assets in which EQT holds a 25% non-operating interest, with other parties also possessing minor stakes, as per additional information to Reuters.

EQT's initiative to divest its stake, primarily acquired through the $3 billion acquisition of Alta Resources in 2021, aligns with its strategy to reduce debt.

As of September 30, 2023, total debt and net debt were both $5.9 billion, respectively, compared to $5.7 billion and $4.2 billion, respectively, as of December 31, 2022. 

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Price Action: EQT shares are trading higher by 1.18% to $37.70 premarket on the last check Thursday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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