Tug Hill, Quantum Energy Explore $5 Billion Sale: Sources

THQ Appalachia, which focuses on the Marshall and Wetzel counties in West Virginia, is expected to fetch bids of more than $5 billion due to the worth of its existing production and potential value of its undeveloped acreage, sources said.

David French and Shariq Khan, Reuters

The owners of THQ Appalachia I LLC are exploring a sale of the U.S. natural gas producer that could value it at more than $5 billion, including debt, people familiar with the matter recently said.

An investment bank has been hired to run the sale process, which kicked off earlier this month, for the company backed by Tug Hill Operating and private equity firm Quantum Energy Partners.

THQ Appalachia, which focuses on the Marshall and Wetzel counties in West Virginia, has net production of around 760 MMcf/d.

While volatility in commodity markets has made it tougher to value energy producers, THQ Appalachia is expected to fetch bids of more than $5 billion due to the worth of its existing production and potential value of its undeveloped acreage, the sources said on June 17.

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