Gas producer EQT to buy peer THQ Appalachia for $5.2 bln (updated)

Inductance Energy

06/09/2022 21:45

(Adds background, more details)
    Sept 6 (Reuters) - Top U.S. natural gas producer EQT Corp
 EQT.N  said on Tuesday it would buy Quantum Energy-backed THQ
Appalachia I LLC for $5.2 billion, expanding its operations to
reap the benefits of strong commodity prices.
    A surge in global natural gas prices following Russia's
invasion of Ukraine has benefited U.S. natural gas producers and
encouraged deals in the industry as companies try to scale up.
    Private equity firm Quantum Energy, which backs THQ, will
receive $2.6 billion in cash and about $2.6 billion in EQT
stock.
     EQT also doubled its share repurchase authorization to $2
billion and raised its 2023 debt reduction target to $4 billion.
    Reuters on Monday reported that EQT was in advanced
discussions to buy THQ Appalachia I.
    The deal, expected to close in the fourth quarter, will add
an estimated 800 million cubic feet per day of gas equivalent
production for EQT, and includes pipeline infrastructure
supporting that production, the company said.
    

 (Reporting by Shariq Khan and Rithika Krishna; Editing by
Shinjini Ganguli)
 ((Shariq.Khan@thomsonreuters.com; Twitter: @shariqrtrs;))