EQT Corp Close To Buying THQ Appalachia: Report

U.S.-based natural gas producer EQT Corporation EQT is in advanced talks to purchase exploration and production company THQ Appalachia I (THQA) for approximately $4 billion, including debt, reported Reuters, citing people familiar with the matter.
Backed by Tug Hill Operating and Quantum Energy Partners, THQ Appalachia I focuses on assets in the Marcellus, Utica/Point Pleasant, and Upper Devonian plays in West Virginia.
THQ Appalachia, with a significant leasehold position in the core of the Marshall and Wetzel counties in West Virginia, has a net production capacity of approximately 760 million cubic feet per day.
Bloomberg reported that a potential transaction involving the sale of THQ Appalachia I and some midstream assets could be valued at nearly $5.2 billion. The transaction will include Tug Hill’s XcL Midstream, a pipeline firm that moves gas in Appalachia to market.
The sources said that after successful negotiations, EQT is expected to sign an agreement with THQ Appalachia’s owners as early as this week.
The talks, however, could still end without signing an agreement between the parties, reported Bloomberg News.
Price Action: EQT stock is up 0.44% at $47.49 during the premarket session on the last check Tuesday.
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