- EQT Corp. (NYSE:EQT) was today's biggest loser, shedding 8.9%, even as its acquisition of Rice Energy (NYSE:RICE) makes the company the top U.S. natural gas producer based on Q1 production.
- The combined output for EQT and Rice in the quarter totaled 3.6B cf/day, beating out Exxon Mobil 's (NYSE:XOM) 3B cf/day and Chesapeake Energy's (NYSE:CHK) 2.56B cf/day.
- EQT appears to be "empire building," and no other driller is likely to submit a successful bid for Rice because EQT's footprint overlaps with Rice's in southwestern Pennsylvania and the two companies have similar midstream operations, Mizuho Securities says.
- Wells Fargo (NYSE:WFC) analysts like the deal given significant overlap of high quality core acreage that should drive EQT's estimate of $2.5B in development and economic synergies as a combined entity, while also providing additional growth potential for midstream entities EQT Midstream (NYSE:EQM) and EQT GP Holdings (NYSE:EQGP).
- "EQT is a decade behind in fracking technology used by industry leaders in Marcellus/Utica," Atlas Consulting's Dallas Salazar tells Reuters. "EQT needs a lot, and Rice offers a lot of what it needs."
- Now read: Chesapeake At
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