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    EQT offers senior notes to pay for Alta acquisition

Summary

Senior notes offered by the Pittsburgh-based gas producer expire in 2026 and 2031.

by: Daniel Graeber

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Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, Financials, Infrastructure, , News By Country, United States

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 ftequivalent/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.