EQT’s $735 Million Acquisition of Chevron’s Appalachia Assets

Kirkland & Ellis counseled EQT Corp., while Shearman & Sterling advised Chevron U.S.A. Inc. on the deal.

EQT Corporation (NYSE: EQT) has entered into a definitive purchase and sale agreement with Chevron U.S.A. Inc. under which EQT will acquire Chevron’s upstream and midstream assets located in the Appalachian Basin for $735 million, subject to customary adjustments at closing. The transaction is expected to close late in the fourth quarter of 2020, subject to customary closing conditions, with an effective date under the purchase and sale agreement of July 1, 2020.

The assets include approximately 450 MMcfe/d of production, 100 work-in-progress wells, 335,000 net acres in the Marcellus basin, a 31 percent ownership interest in Laurel Mountain Midstream, two water systems and associated infrastructure in Pennsylvania and West Virginia.

EQT intends to finance the acquisition, subject to market conditions and other factors, with cash on hand, drawings under its revolving credit facility and/or one or more capital markets transactions.

EQT Corporation is a leading independent natural gas production company with operations focused in the cores of the Marcellus and Utica Shales in the Appalachian Basin.

The Kirkland team representing EQT was led by transactional partners Anthony Speier (Picture), Rahul Vashi and Cy Jones and associate Lindsey Jaquillard.

Shearman & Sterling advised Chevron U.S.A. Inc. with Angela Heywood Bible (Picture), Ryan Staine, Hugh Tucker, David A. Higbee, Tomasz Kulawik, K. Mallory Brennan, Jonathan Cheng, and John W. Menke.

Involved fees earner: Lindsey Jaquillard – Kirkland & Ellis; Cyril Jones – Kirkland & Ellis; Anthony Speier – Kirkland & Ellis; Rahul Vashi – Kirkland & Ellis; Mallory Brennan – Shearman & Sterling; Jonathan Cheng – Shearman & Sterling; Angela Heywood Bible – Shearman & Sterling; David Higbee – Shearman & Sterling; Tomasz Kulawik – Shearman & Sterling; John Menke – Shearman & Sterling; Ryan Staine – Shearman & Sterling; Hugh Tucker – Shearman & Sterling;

Law Firms: Kirkland & Ellis; Shearman & Sterling;

Clients: Chevron USA Inc; EQT Corporation LP;

Author: Ambrogio Visconti