Marcellus News: EQT Buys Alta's Northeast Pennsylvania Assets -- $10K/Acre? May 6, 2021

Updates

Later, 2:07 p.m. CT: from a reader who really follows this --

I have been poring over Alta's production history to try to better grasp what EQT has in mind.

This single 'factoid'  from the press release speaks volumes ... a claimed reduction in the 'break even' cost by 10 cents per mmbtu. 

This is just one important consequence of the ongoing consolidation/mergers in the Appalachian Basin. 

The cost to produce and transport natgas continues to plummet. 

One ripple effect is to hinder future  developments worldwide such as those in Trinidad, Mozambique, Tanzania and many, many more now-indigenous sources.

Look for news involving Exxon's/XTO's divestiture from the Appalachian Basin in the months (weeks?) to come.

Exciting times in the hydrocarbon production world.

Original Note

Social media link here. 

Press release here. 

Bloomberg here.

Some numbers rounded.

Deal:

• $3 billion
• 300,000 core net Marcellus acres;
• 98% held by production
• current net production: 1.0 Bcfe per day; 100% dry gas
• 300-miles of owned and operated midstream gathering systems
• 100-mile freshwater system with 255 million gallons of storage capacity
• projected to increase free cash flow by 55% or $2.0 billion, through 2026 -- just five years from now;
• projected annual free cash flow: $400 million
• projected annual adjusted EBITDA of $600 million