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EQT Corp to buy Chevron’s assets in Appalachian basin for $735 million


(Reuters) – Natural gas producer EQT Corp EQT.N said on Tuesday it will buy U.S. oil major Chevron Corp’s CVX.N assets in the Appalachian basin for $735 million.

The deal includes about 100 work-in-progress wells, acreage in the Marcellus basin and a 31% stake in Laurel Mountain Midstream, a joint venture between Chevron, producer Laurel Mountain and pipeline operator Williams Cos Inc WMB.N.

EQT’s shares fell nearly 4% in after-market trading after it launched an offering of 20 million shares to partially fund the deal alongside cash and borrowings.

The deal comes at a time when the COVID-19 pandemic has slashed energy demand, sent oil prices to historic lows earlier this year and forced producers to cut costs, curtail production and seek consolidation to weather a downturn.

Reuters reported last month that EQT had placed a bid on Chevron’s Appalachia gas properties and a pipeline stake.

Chevron last year said it was considering a sale of the properties and took an $8.17 billion charge to earnings to write down their value and an unrelated U.S. offshore project.

Jefferies LLC acted as EQT’s financial adviser for the deal.

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