EQT offers senior notes to pay for Alta acquisition
US gas producer EQT said May 10 it was issuing senior notes to help pay for its recently-announced acquisition of Alta Resources.
EQT intends to offer $1bn in notes due in 2026 and 2031.
“EQT intends to use the net proceeds from the offering, together with cash on hand and/or borrowings under its revolving credit facility, to fund the cash consideration relating to its previously announced acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries,” EQT said.
Pittsburgh-based EQT, the largest US natural gas producer, announced May 6 it would buy shale rival Alta Resources and its upstream and midstream assets for $2.9bn.
The deal brings EQT 300,000 acres in the Marcellus shale basin within the broader Appalachia reservoir. The assets in question are producing around 1bn ft3 equivalent/d. Atla’s midstream holdings include 300 miles of owned and operated pipelines.
EQT estimates the deal, which is expected to close in Q3, will yield between $300mn and $400mn in annual free cash flow.
EQT reported a net loss for the three month period ending March 31 of $41mn, compared with a year-ago loss of $167mn. The company attributed the improvement in part to higher sales and income from investments.