On June 28, 2018, two wholly owned subsidiaries of EQT Corporation – EQT Production Company (“EQT Production”) and EQT Gathering, LLC (“EQT Gathering”) – entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Diversified Gas & Oil Corporation (“DGOC”) pursuant to which EQT Production and EQT Gathering will divest of certain upstream and midstream oil, gas and NGL assets for a total of $575 million. DGOC is a subsidiary of Diversified Gas & Oil plc (“DGO”), which is listed on the London Stock Exchange’s Alternative Investment Market (“AIM”).
During the negotiation of the transaction, the trading of DGO’s shares was suspended and, following publication of the re-admission document for DGO, the shares were readmitted for trading on AIM. The completion of the transaction remains subject to the approval of DGO’s shareholders.
The upstream assets to be acquired by DGOC are EQT Production’s non-core shallow wells located in Kentucky, West Virginia and Virginia and include approximately 2.5 million acres and approximately 11,250 wells and. The midstream assets to be acquired by DGOC are located in Kentucky, Maryland, Virginia and West Virginia and include approximately 6,400 miles of low pressure gathering lines and 59 compressor stations. DGOC also agreed to hire all of the EQT employees in these areas. EQT retained all deep rights under the properties.
Baker Botts represented EQT Production and EQT Gathering in the transaction.
The Baker Botts team included:
Corporate: Mike Bengtson (Partner, New York); John Kaercher (Senior Associate, Austin); Rachel Ratcliffe (Associate, Austin); Neil Foster (Partner, London); Sarah Melaney (Associate, London)
Global Projects: Greg Wagner (Partner, Washington, D.C.); Scott Looper (Senior Associate, Houston)
Tax: Jon Lobb (Partner, Houston); Matthew Larsen (Partner, Dallas); Katie McEvilly (Associate, Houston)
Employee Benefits: Rob Fowler (Partner, Houston); Krisa Benskin (Senior Associate, Houston)
Antitrust: Michael Bodosky (Partner, Washington, D.C.)
