8-KMaterial AgreementsRegulation FDExhibits & Filings

EQT Corp 8-K Report, Material Agreement (Apr 16, 2007)

Filed April 16, 2007For Securities:EQT

Summary

This Form 8-K filing by EQT Corp (EQT) on April 16, 2007, details a significant divestiture and joint venture transaction. The company, through its subsidiary Equitable Production Company, has entered into an agreement to sell a portion of its gas property interests in the Nora Field, Southwestern Virginia, to Pine Mountain Oil and Gas, Inc. (a subsidiary of Range Resources Corporation) for approximately $262 million. This sale will reduce EQT's proved reserves by 81 Bcf and impact its 2007 production sales forecast. In conjunction with the sale, EQT is also forming a joint venture with Pine Mountain Oil and Gas, Inc. to operate the Nora Field gathering facilities. EQT's subsidiaries will contribute the existing gathering facilities and pipelines to a new entity, Nora Gathering, LLC, which will be equally owned by EQT and Pine Mountain Oil and Gas. Pine Mountain Oil and Gas will contribute approximately $53 million to this new entity. The transaction is expected to provide EQT with after-tax proceeds exceeding $150 million and is subject to customary closing conditions, including antitrust clearance.

Key Highlights

  • 1EQT Corp divests a portion of its Nora Field gas properties for approximately $262 million.
  • 2Forms a 50/50 joint venture, Nora Gathering, LLC, with Pine Mountain Oil and Gas (a Range Resources subsidiary) to manage Nora Field gathering facilities.
  • 3Pine Mountain Oil and Gas will contribute approximately $53 million to the joint venture.
  • 4The sale will reduce EQT's proved reserves by 81 Bcf (74 Bcf developed).
  • 5Transaction is expected to generate after-tax proceeds for EQT in excess of $150 million.
  • 6The sale of developed wells will decrease EQT's 2007 production sales forecast by 3.2 Bcf, with a revised forecast of 77-78 Bcf.
  • 7Transaction closing is anticipated by the end of May 2007, pending regulatory approvals like Hart-Scott-Rodino clearance.

Frequently Asked Questions

This filing announces EQT Corp's definitive agreement to sell a portion of its Nora Field gas properties and to form a joint venture for the related gathering infrastructure with Pine Mountain Oil and Gas, Inc.

EQT expects to receive approximately $262 million for the property sale and contribute to a joint venture where Pine Mountain Oil and Gas contributes $53 million. The net after-tax proceeds from the overall transaction are anticipated to exceed $150 million.

The sale will reduce EQT's proved reserves by 81 Bcf. The sale of developed wells will also lower EQT's 2007 production sales forecast by 3.2 Bcf, revising the forecast to 77-78 Bcf.

The closing is subject to customary conditions, including obtaining clearance under the Hart-Scott-Rodino Antitrust Improvement Act. EQT anticipates closing to occur shortly after all conditions are met, likely by the end of May 2007.