Shell sells upstream and midstream assets in Pennsylvania to NFG

Date: 2020-05-06   Author: Pankaj Singh  Category: #market

Shell sells upstream and midstream assets in Pennsylvania to NFG

Royal Dutch Shell plc, through its subsidiary SWEPI LP, has reportedly inked a purchase and sale agreement with the American energy company, National Fuel Gas (NFG) to sell its midstream and upstream assets in Pennsylvania. The deal valuation apparently, has been finalized at USD 541 million. The amount is subject to closing adjustments that are projected to decrease the consideration provided at closing to around USD 500 million.

As per the terms and conditions of the agreement, NFG has the option to offer up to USD 150 million of its stocks to Shell at the price of USD 38.97/Share.  Following the transaction, NFG will acquire more than 200,000 net acres in Tioga County with total natural gas reserves of around 710 Bcf.

At closing, all these assets are anticipated to have flowing net production from Utica as well as Marcellus shale formations of around 215-230 MMcf/d with 86.5% of net revenue interest and shallow base declines. Moreover, the company will also acquire water handling infrastructure which presently aids Shell’s Tioga County production operations.

Speaking on the move, David P. Bauer, President and Chief Executive Officer of NFG said that the acquisition of Shell’s assets in Appalachia would provide the company with high and a unique strategic opportunity to advance its integrated development approach in this region.

Mr. Bauer added that Shell’s high-quality assets are a perfect fit for the NFG’S diversified business model and offer meaningful synergies with present operations.

As per sources, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors for NFG while Jones Day and Ellis LLP are acting as legal advisors for the company. The sale of assets is subject to regulatory approvals and is anticipated to close by 31st July 2020. The deal was effective from 1st January 2020.

Source Credit - https://www.globenewswire.com/news-release/2020/05/04/2027069/0/en/National-Fuel-to-Acquire-Shell-s-Integrated-Upstream-and-Midstream-Assets-in-Pennsylvania.html



About Author


Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Cable Cutting Shears Sales Market to Witness an Outstanding Growth During 2021- 2027

Author: Sachin Pashte

The Cable Cutting Shears Sales market study now available with Market Study Report, LLC, is a collation of valuable insights related to market size, market share, profitability margin, growth dynamics and regional proliferation of this business ve...


Hard Kombucha Sales Market Size and Forecasts Research Report 2021-2027

Author: Sachin Pashte

MarketStudyReport.com presents latest report on global Hard Kombucha Sales Market, which evaluates the growth trends of the industry through historical study and estimates future prospects based on comprehensive research. The report extensively pr...


Ultrasonic Testing Probes Market to Deliver Prominent Growth & Striking Opportunities Scenario Highlighting Major Drivers & Trends 2021-2027

Author: Sachin Pashte

Ultrasonic Testing Probes market provides accurate analysis of the vertical with respect to valuation forecasts, competitive intelligence, growth drivers, risks & limitations, Covid-19 impact, and other important subjects.

The recent...