EQT is headquartered in Pittsburgh, Pennsylvania and it also has a large production division and a large midstream division. The company’s history goes back 130 years, but it spent most of that time as a utility-focused company before evolving recently into a production company called Equity Resources. Right now, EQT is the largest producer in the region, but after the deal is completed it will be the largest natural gas producer in the country. The two companies have much of the land they own or lease right next to each other, so they will be able to expand their existing operations through actions like drilling extra-long horizontal wells. EQT’s current management team will run the new company, through leaders from Rice will be added to the board.
Not everyone is crazy about the deal. Some analysts and activist shareholders say EQT is overpaying for Rice and it should instead focus on splitting its production and pipeline divisions apart. A New York-based hedge fund called Jana and two executives from Atlas Energy own a significant amount of EQT stock and they are opposing the sale. As of now there seems to be no sign that the transaction is in jeopardy, but it is no slam dunk.
When it comes to acquiring land in the region, Cimmaron Land has helped producers large and small for over two decades. If your company wants to expand its footprint, give us a call.