EQT Corp. said on Aug. 22 that it has closed its previously announced cash-and-stock acquisition of XCL Midstream after more than a year of delays caused by regulatory review by the Federal Trade Commission (FTC).

After purchase price adjustments, EQT paid approximately $2.4 billion of cash and 49.6 million shares of EQT common stock.

EQT funded the cash portion with $1.25 billion in term loan borrowings, $1 billion of cash on hand and a $150 million cash deposit previously held in escrow.

The completion of the deal comes just days after the FTC signed off the deal, saying it had resolved certain antitrust concerns between EQT and Quantum Energy Partners. A consent order “prevents entanglements between the two companies and the exchange of confidential, competitively sensitive information,” according to an Aug. 16 release from the commission.

Toby Z. Rice, president and CEO said the strategic transaction, first announced in July 22, unites Tug Hill and XCL Midstream’s teams with EQT.

“These assets have among the lowest breakeven prices in Appalachia, and should reduce our pro forma NYMEX free cash flow breakeven price by approximately $0.15 per MMBtu,) providing greater resiliency to our business moving forward,” Rice said in a news release. “We also see the potential for more than $80 million per year of synergies, which could drive additional reductions to our corporate cost structure over time."

Tug Hill's upstream assets currently average the equivalent of approximately 800 MMcf/d, with a 20% liquids yield.

XCL Midstream's gathering and processing assets add 145 miles of owned and operated midstream gathering systems that connect to every major long-haul interstate pipeline in southwest Appalachia.

EQT plans to provide pro forma financial guidance with its third quarter earnings results.

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