US Gas Firm EQT Nears Deal to Buy Appalachia Producer, Midstream Assets
EQT Corp., the largest US natural gas producer, is in advanced talks to acquire THQ Appalachia I LLC to expand in the Marcellus shale, according to people with knowledge of the matter.
(Bloomberg) — EQT Corp., the largest US natural gas producer, is in advanced talks to acquire THQ Appalachia I LLC to expand in the Marcellus shale, according to people with knowledge of the matter.
THQ, backed by Tug Hill Operating and Quantum Energy Partners, and some midstream assets would be valued in the deal at about $5.2 billion, the people said, asking not to be identified discussing private information. The transaction will include Tug Hill’s XcL Midstream, a pipeline firm that moves gas in Appalachia to market.
An announcement could come as soon as Tuesday, the people said. A final agreement hasn’t been reached and talks could still end without one, the people said.
A spokesperson for EQT declined to comment. Representatives for Tug Hill, Quantum and XcL didn’t immediately respond to requests for comment Monday.
Shares of Pittsburgh-based EQT have more than doubled this year amid the global energy crisis that has pushed up prices.
THQ is an exploration and production company operating in West Virginia, according to its website.
Private equity firm Quantum Energy invested in Fort Worth, Texas-based Tug Hill in 2014. It also has an equity commitment in THQ Appalachia which is operated by Tug Hill.