EQT Corp. To Acquire Rice Energy In Approx. $6.7 Bln Deal - Quick Facts

(RTTNews) - EQT Corp. (EQT) and Rice Energy Inc. (RICE) announced a merger agreement under which EQT will acquire all of the outstanding shares of Rice common stock for total consideration of approximately $6.7 billion - consisting of 0.37 shares of EQT common stock and $5.30 in cash per share of Rice common stock. EQT Corp. will also assume or refinance approximately $1.5 billion of net debt and preferred equity.

EQT Corp. anticipates a 50% increase in average lateral lengths for future wells located in Greene and Washington Counties in Pennsylvania. The same land synergy also complements the infrastructure footprint of EQT Midstream Partners, LP (EQM).

EQT will obtain Rice's midstream assets, including a 92% interest in Rice Midstream GP Holdings LP, which owns 100% of the general partner incentive distribution rights and 28% of the limited partner interests in Rice Midstream Partners LP (RMP), and the retained midstream assets currently held at Rice. The retained midstream assets, which EQT intends to sell to EQM in the future through drop-down transactions, are expected to generate approximately $130 million of EBITDA in 2018.