EQT Acquires Rice Energy to Dominate U.S. Natural Gas

Keith Kohl

Written By Keith Kohl

Posted June 20, 2017

This time last year I wrote that natural gas was on the rise.

A few months later, I wrote that the U.S. had once again become a net exporter of natural gas. That shouldn’t come as a surprise to us considering the fact that our natural gas exports have been steadily rising for nearly two decades:

 nat gas expor

We’re not the only ones noticing how vital natural gas will be to our transition away from fossil fuels…

Yesterday, EQT Corp (NYSE:EQT) announced that it had acquired Rice Energy (NYSE:RICE) for $6.7 billion dollars, making it the biggest natural gas producer in the United States.

EQT will now provide roughly 5% of all the natural gas supply in the U.S., leap-frogging over massive energy powerhouses like ExxonMobil.

Why Rice? Well, Rice Energy controlled approximately 185,000 acres of land in the Marcellus Shale play — which accounts for one-fifth of all the natural gas extracted from beneath U.S. soil.

We’ve talked about the Marcellus quite a bit here at Energy and Capital. The play has an incredible amount of natural gas reserves at hand, with companies pumping out about 19.3 billion cubic feet every single day!

Of course, demand is higher than ever. Last year, the U.S. consumed a total 27.4 trillion cubic feet of natural gas.

And now that U.S. natural gas has finally reached the world stage, we could be seeing more of these huge deals in the future.

After news of the deal broke, Rice Energy’s shares jumped from Friday lows of $19.44 to highs of $25.52.

rice hr

Will EQT will deliver for its new shareholders? As our leading gas producer, it’s certainly in a strong position right now.

More important, however, is that this deal may just be the beginning. It seems almost inevitable that we’ll see more cherry-picking in the Marcellus going forward.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basicCheck us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium

Introductory

Advanced

Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.