EQT, Rice Energy Deals Show Price per Acre for Leases Still High

money-bag.jpgYesterday MDN brought you the news that EQT has cut a deal to buy all of Norwegian Statoil’s operated Marcellus assets in West Virginia for $407 million (see EQT Buying 62.5K “Core” WV Marcellus Acres from Statoil for $407M). One of MDN’s favorite energy analysts, Richard Zeits, writing on the Seeking Alpha website, does a close examination of the deal. We have a portion of this thoughts below. As part of Zeits’ deep dive on this deal, he takes a side road and compares how much EQT is paying per acre in this deal with the recently announced Rice Energy deal to purchase the Marcellus assets of bankrupt coal company Alpha Natural Resources (see Rice Energy Offers Bankrupt ANR $200M for Marcellus/Utica Assets). Zeits finds the per-acre price being paid by EQT is less than the Rice deal. But the real eye-opener is that the prices each are paying is still quite high–perhaps an indication that once unleased or expired lease acreage heats up again, prices will remain high…

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