Equinor and EQT Corporation have agreed to swap Equinor’s operated position in the Marcellus and Utica shale formations in Ohio for a stake in EQT’s non-operated interest in the Northern Marcellus formation.

Under the transaction agreement, Equinor will sell 100% interest in and operatorship of its onshore asset in the Appalachian Basin, located in southeastern Ohio, in exchange for 40% of EQT’s non-operated working interest in the Northern Marcellus shale formation in Pennsylvania.

Equinor will pay a cash consideration of USD 500 million to EQT to balance the overall transaction, swapping for resources that contribute to growing cashflows and further reducing CO2 emissions intensity in the international portfolio.

Following the transaction, Equinor will increase its average working interest from 15.7% to 25.7% in certain Chesapeake-operated Northern Marcellus gas units. To cover pre-existing gas sales commitments, Equinor will enter a gas buy-back agreement with EQT.

“With this transaction, we continue to high-grade the US portfolio and improve profitability by strengthening our gas position in the most robust part of the Appalachian Basin. These assets are well positioned to leverage anticipated positive developments in the US gas market. The proposed swap improves portfolio robustness with an expected reduction in well break-evens and upstream carbon intensity. This also means that we have now fully exited all operated positions onshore US,” says Philippe Mathieu, executive vice president for Exploration and Production International at Equinor.

“The US is a core area for Equinor where we’re building a broad energy business within offshore and onshore oil and gas, offshore wind, and new low-carbon value chains,” says Mathieu.

Since 2020, Equinor’s US business has recorded USD 11 billion in earnings. Prior to this transaction, the Appalachian Basin operated position was the last remaining operatorship held by Equinor in the US onshore.

EQT Corporation is the largest producer of natural gas in the US with operations in Pennsylvania, West Virginia and Ohio.

Final completion will, among other things, be dependent on approval by relevant authorities.

About Equinor

Equinor (OSE:EQNR, NYSE:EQNR), is an international energy company with a proud history. Formerly Statoil, we are 20,000 committed colleagues developing oil, gas, wind and solar energy in more than 30 countries worldwide. We’re the largest operator in Norway, among the world’s largest offshore operators, and a growing force in renewables. Driven by our Nordic urge to explore beyond the horizon, and our dedication to safety, equality and sustainability, we’re building a global business on our values and the energy needs of the future.

About EQT Corporation

EQT Corporation (NYSE: EQT) is a leading independent natural gas production company with operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do.