EQT Corp. in Talks With Chevron for Assets in Appalachia
The leading U.S. natural gas producer has offered $750 million for the properties, added the source. Notably, the assets Chevron is willing to sell comprise roughly 800,000 acres in the prolific Marcellus and Utica shale plays along with a 31% non-operating stake in Laurel Mountain Midstream. The midstream firm provides services to the Marcellus shale area through its intrastate and gathering pipelines.
According to the source, Chevron is now evaluating the company’s bid for the assets. The latest bid probably reflects EQT Corp.’s willingness to purchase the assets at bargain prices since the challenging business scenario has slashed commodity prices. However, the source added that although the companies are discussing the potential transaction, there is no assurance that Chevron will divest the properties.
The source added that on a per-day basis, the Appalachian properties produced 262 million cubic feet of natural gas in 2019.
Headquartered in Pittsburgh, PA, EQT Corp. currently carries a Zacks Rank #4 (Sell). However, the stock has gained 12.8% in the past three months.
Meanwhile, better-ranked players in the energy space include Pioneer Natural Resources Company PXD and Concho Resources Inc. CXO, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pioneer Natural has seen upward earnings estimate revisions for 2020 in the past 30 days.
Concho is likely to see earnings growth of 21.6% in 2020.
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