Reliance Industries’ arm Reliance Marcellus has signed an agreement with Delaware-based Northern Oil and Gas for sale of shale gas assets in south western Pennsylvania for a consideration of $250 million cash and warrants, the Mukesh Ambani-led company said Thursday.
The deal includes an unadjusted cash purchase price of $175 million plus equity warrants that will be issued to RIL upon closing of the transaction. The deal is expected to be closed in April 2021, subject to customary purchase conditions, Northern Oil and Gas said.
“The valuation metrics speak for themselves; it’s a very compelling deal. It’s accretive across all the key metrics,” Nicholas O’Grady, chief executive officer, Northern Oil and Gas said in a web call after signing the deal.
The assets include certain non-operated assets in the Appalachian Basin from that were operated by various affiliates of EQT Corporation.
Northern Oil and Gas said that Arch Energy has partnered with for the acquisition and the latter will get 30% interest in the assets for a cash purchase price of $75 million
Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.
