National Fuel Gas To Buy Shell' Assets In Pennsylvania For $541 Mln

(RTTNews) - National Fuel Gas Co. (NFG) Monday said it agreed to buy Royal Dutch Shell plc's (RDS.A) upstream and midstream gathering assets in Pennsylvania for about $541 million.

The transaction is expected to close on July 31, 2020, with an effective date of January 1, 2020.

As part of the deal, the company will acquire over 200,000 net acres in Tioga County, with net proved developed natural gas reserves of around 710 Bcf. At closing, these assets are expected to have flowing net production from both the Utica and Marcellus shale formations of approximately 215-230 MMcf/d, with shallow base declines and an average net revenue interest of approximately 86.5%.

In addition, the company will acquire approximately 142 miles of gathering pipelines and related compression, over 100 miles of water pipelines, and associated water handling infrastructure, all of which currently support Shell's Tioga County production operations.

Post-closing, the acquired assets are expected to generate net natural gas production in the range of 70 to 75 Bcf over the following twelve months.