Rice Energy Makes $2.7 Billion Acquisition
A natural gas driller known for operating some of the highest-producing wells in the state in Belmont County continues growing, as Rice Energy will acquire Vantage Energy for $2.7 billion.
Once the deal is finalized, Canonsburg, Pa.-based Rice will control 231,000 acres and 1,164 drilling locations in Ohio and Pennsylvania.
“This deal represents the largest core dry gas Marcellus acquisition to date, one that is truly transformational for Rice Energy, Rice Midstream Partners and our respective shareholders,” Rice CEO Daniel J. Rice IV said. “Our proven success developing the Marcellus Shale in Greene County gives us tremendous confidence in our ability to generate meaningful growth and create substantial value on the acquired assets for both Rice Energy and Rice Midstream Partners, and we look forward to seamlessly integrating the acquired assets into our leading-edge shale development in Appalachia.”
Rice produced an average of 758 million cubic feet of natural gas each day from April 1 to June 30. This is a 43-percent increase from the comparable 2015 quarter, as well as a 12-percent increase from the first quarter of this year. During the second quarter, Rice invested $148 million, including $95 million to drill and frack wells. The company also hooked up nine new wells to pipelines to initiate production.
In purchasing Vantage, Rice will gain about 85,000 Marcellus Shale acres in Greene County, Pa., with rights to the deeper Utica Shale on approximately 52,000 of these acres. These assets yielded Vantage 399 million cubic feet per day during the second quarter.
“We believe the combination of Rice and Vantage creates the premier natural gas company in the country,” Vantage CEO Roger Biemans said. “Rice will have a multi-decade inventory of the most economic dry gas in North America, a tremendous growth story for its midstream business, and a management team that has proven its ability to execute on its strategy.”
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