EQT works on deal to buy THQ Appalachia, XcL Midstream
Wednesday, September 7, 2022
EQT Corp. is working on a deal to acquire THQ Appalachia I LLC to expand its operations in the Marcellus Shale, according to Bloomberg.
According to Bloomberg’s sources, who asked not to be named, THQ Appalachia, backed by Tug Hill Operating and Quantum Energy Partners, and some midstream assets would be valued in the deal at about $5.2 billion.
Additionally, the transaction will include Tug Hill’s XcL Midstream, a pipeline firm that moves gas in Appalachia to market.
An announcement is expected soon if a deal is reached, however, sources said that advanced talks could end without one.
Learn more: Bloomberg > US Gas Firm EQT Nears Deal to Buy Appalachia Producer, Midstream Assets
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.