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EQT Corporation (EQT) to Purchase Marcellus Acres for $527M

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Integrated energy player EQT CorporationEQT recently declared that it has succeeded in winning a bankruptcy auction bid to purchase 53,400 net acres of land in the core Marcellus area. The transaction is anticipated to complete on Feb 28.

Notably, EQT Corporation is likely to buy the acres for approximately $527 million from Stone Energy Corporation SGY . The acquisition comprises drilling rights from 44,100 net acres of land in the Utica shale along with present natural gas production of roughly 80 MMcfe (million cubic feet equivalent) every day. Location wise, Utica is situated a few thousand feet below the Marcellus Shale.

The company added that to-be-purchased properties are inside its core operating regions that are liquid rich. Most importantly, the areas will complement the adjacent operations of EQT Corporation. With the acquisition, the company will likely have 173 new Marcellus areas, comprising 174 Marcellus wells. Out of the total, 123 wells have been developed while the remaining 51 are in progress.

Investors should also know that the assets also include gathering pipeline - covering 20 miles - along with 32,000 acres of area located outside the core operating locality of EQT Corporation.

Based in Pittsburgh, PA, EQT Corporation's business comprises natural gas production in the Appalachian region and also gathering and transportation activities. In each of the last four quarters, the company was able to beat the Zacks Consensus Estimate. The company has an average positive earnings surprise of 163.71%.

Moreover, EQT Corporation has a strong balance sheet. This is evidenced by the company's better Current Ratio - measure of liquidity - than other energy players. The Current Ratio for EQT Corporation is 3.47 compared with 3 for Concho Resources Inc. CXO , 3.26 for QEP Resources Inc. QEP and 2.91 for Southwestern Energy Company SWN .

However, the company underperformed the Zacks categorized industry in the last six months. During the aforesaid period, EQT Corporation shares fell more than 6% compared with 7.2% increase for the broader industry.

However, the company underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry in the last six months. During the aforesaid period, EQT Corporation shares fell more than 6% compared with 7.2% increase for the broader industry.

Presently, EQT Corporation carries a Zacks Rank #3 (Hold). You can see .

Presently, EQT Corporation carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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Southwestern Energy Company (SWN): Free Stock Analysis Report

EQT Corporation (EQT): Free Stock Analysis Report

QEP Resources, Inc. (QEP): Free Stock Analysis Report

Stone Energy Corporation (SGY): Free Stock Analysis Report

Concho Resources Inc. (CXO): Free Stock Analysis Report

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


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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