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EQT Corp to buy Chevron's assets in Appalachian basin for $735 mln

Credit: REUTERS/Mike Blake

Natural gas producer EQT Corp said on Tuesday it will buy U.S. oil major Chevron Corp's assets in the Appalachian basin for $735 million.

Adds deal details, background

Oct 27 (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, which is expected to close late in the fourth quarter this year, includes about 100 work-in-progress wells.

The deal comes at a time when the COVID-19 pandemic has slashed energy demand, sent 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.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shounak Dasgupta)

((Arundhati.Sarkar@thomsonreuters.com; twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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