Rice Energy’s Purchase of Vantage a Way to Quickly “Scale Up”

M&AMore analysis continues to roll in on Rice Energy’s plan to buy Vantage Energy for $2.7 billion (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). We ran a post following the initial announcement pointing out there is one main reason why Rice is buying Vantage: 85,000 Marcellus Shale acres in Greene County, PA (see Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…). We have part of another article tackling the buyout–this time from top energy analyst and Seeking Alpha writer Richard Zeits. He points out a few interesting facts, like the fact that if you do the math, Rice is essentially paying Vantage $20,000 per acre! But Zeits you have to put the price in context: Rice is using a stock swap as their currency for purchasing the acreage. In other words, this is a clever way for Rice to “scale up” quickly without breaking the bank…

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