Diversified Gas & Oil PLC, Birmingham, Ala., has acquired EQT Corp.’s southern Appalachian producing gas and oil and midstream assets for $575 million. With the deal’s close July 18, Diversified’s production doubled to more than 60,000 boe/d.
Diversified assumes operation of select EQT gas and oil assets across Kentucky, Virginia, and West Virginia, totaling more than 11,000 wells, 6,400 miles of gathering pipe, and 59 compressor stations. More than 250 employees will join Diversified, the company said.
The purchase was funded through an extension to the company’s existing credit facility, which increased to $1 billion from $500 million, and a capital raise of $250 million.
The deal follows Diversified’s purchase of Alliance and CNX Resources assets in the Appalachian basin, concentrated in Ohio, Pennsylvania, and West Virginia (OGJ Online, Feb. 12, 2018). The deals closed in April.