Equinor Announced Major Expansion to U.S. Natural Gas Portfolio

SEATTLE (Oil Monster):  Equinor, a large energy company located in Norway, has announced a big boost to its natural gas portfolio in the United States through the purchase of more stakes in the Northern Marcellus formation. The transaction is anticipated to completion by the fourth quarter of this year, subject to customary closing conditions and required regulatory clearances.

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A news release from the firm states that it will pay $1.25 billion to acquire all of EQT's remaining operating interest in Northern Marcellus gas units. Equinor's overall working interest in the project will also jump, rising from 25.7% to 40.7%. It is anticipated that the acquisition will increase Equinor's cash flow by contributing significant amounts of natural gas. The company's U.S. production is expected to increase by about 80,000 barrels of oil equivalent per day (boepd).

The deal is consistent with the business's regional expansion plan. It will also strengthen Equinor's global gas portfolio. It should be mentioned that since the start of 2021, the company's Exploration and Production (E&P) USA division has produced approximately $5.5 billion in adjusted operating income after taxes, indicating great success.

Philippe Mathieu, international executive vice-president of Equinor exploration and production, stated that the agreement will increase the company's resilience in a key market.