(Energy Analytics Institute, 29.Oct.2024) — Equinor inked an agreement with EQT Corporation to acquire additional non-operated interest in the Northern Marcellus formation in the US. Equinor will pay $1.25bn to EQT in the transaction.
Per the agreement, Equinor is acquiring 100% of EQT’s remaining working interest in Northern Marcellus gas units primarily operated by Expand Energy, the Norwegian company said 29 Oct. 2024 in an official statement.
EQT is one of the largest producers of natural gas in the US with operations in Pennsylvania, West Virginia and Ohio.
“We continue to high-grade Equinor’s international portfolio in line with our strategy, improving robustness by adding more natural gas volumes in a core market where we produce with low break-evens and low intensity upstream emissions,” Equinor executive vice president for Exploration and Production International Philippe Mathieu said in the statement.
“We are well positioned in this premium acreage to capitalize on positive long-term demand indicators in the US gas market,” Mathieu said.
The transaction will increase cashflow from the international portfolio by adding natural gas volumes with low carbon intensity emissions from production. Closing of the transaction will is dependent on approval by relevant authorities.
Subject to closing, the acquisition will have economic effect from 31 Dec. 2024. The acquisition covers the same acreage included in the swap agreement with EQT announced earlier this year.
With this transaction, Equinor is increasing its average working interest in the Northern Marcellus asset from 25.7% to 40.7%. The transaction adds approximately 80,000 boe/d to Equinor’s US production in the near-term.
Equinor’s E&P USA business has delivered over $5.5bn in adjusted operating income after tax since the start of 2021, the company said in the statement.
“The US is a core country for Equinor, where we have shaped a robust onshore and offshore oil and gas portfolio, alongside our activities in offshore wind, battery storage, and low-carbon value chains,” Mathieu said.
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