Equinor strengthens gas portfolio
Equinor has signed an agreement with EQT Corporation to acquire additional non-operated interest in the Northern Marcellus formation in the US. Equinor will pay USD 1.25 billion to EQT in the transaction.
Under the agreement, Equinor is acquiring 100% of EQT’s remaining working interest in Northern Marcellus gas units primarily operated by Expand Energy.
The transaction will increase cashflow from the international portfolio by adding natural gas volumes with low carbon intensity emissions from production.
Subject to closing, the acquisition will have economic effect from 31 December 2024. The acquisition covers the same acreage included in the swap agreement with EQT announced earlier this year.
With this transaction, Equinor is increasing its average working interest in the Northern Marcellus asset from 25.7% to 40.7%. The transaction adds approximately 80,000 barrels of oil equivalent per day (boe/d) to Equinor’s US production in the near-term.
“We continue to high-grade Equinor’s international portfolio in line with our strategy, improving robustness by adding more natural gas volumes in a core market where we produce with low break-evens and low intensity upstream emissions. We are well positioned in this premium acreage to capitalize on positive long-term demand indicators in the US gas market,” says Philippe Mathieu, executive vice president for Exploration and Production International at Equinor.
Equinor’s E&P USA business has delivered over USD 5.5 billion in adjusted operating income after tax since the start of 2021.
“The US is a core country for Equinor, where we have shaped a robust onshore and offshore oil and gas portfolio, alongside our activities in offshore wind, battery storage, and low-carbon value chains,” says Mathieu.
EQT Corporation is one of the largest producers of natural gas in the US with operations in Pennsylvania, West Virginia and Ohio.
Closing of the transaction will, among other things, be dependent on approval by relevant authorities.
