Strategic Acquisition of 85,000 Net Acres and Midstream Assets in the Marcellus Dry Gas Core
CANONSBURG, Pa., Sept. 26, 2016 /PRNewswire/ -- Rice Energy Inc. (NYSE: RICE) ("Rice Energy") today announced it has entered into a purchase and sale agreement ("PSA") to acquire Vantage Energy, LLC and Vantage Energy II, LLC (collectively, "Vantage Energy") for approximately $2.7 billion, including the assumption of debt. In connection with the acquisition, Rice Midstream Partners LP (NYSE: RMP) ("RMP") will purchase the acquired midstream assets from Rice Energy for $600 million. The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions.
The E&P assets to be acquired by Rice Energy include approximately 85,000 net core Marcellus acres(1) in Greene County, Pennsylvania, with rights to the deeper Utica Shale on approximately 52,000 net acres and 37,000 net acres in the Barnett Shale. Second quarter 2016 net production of the acquired assets was 399 MMcfe/d (approximately 65% Appalachia, 35% Barnett). The core midstream assets to be acquired by RMP include 30 miles of dry gas gathering and compression assets. As part of the transaction, Rice Energy will dedicate the acquired Pennsylvania acreage to RMP to provide gas gathering, compression and water services.
Rice Energy Inc. widened its loss for the 2016 second quarter to $138.7 million, or $1.07 per share, compared with a loss of $63.5 million, or 51 cents per share during the same three months last year.
Rice loses money quarter after quarter yet Bankers seem to be throwing money at them.
It makes you wonder what the real story is.
To help fund the acquisition, RICE announces a 40M-share public offering of common stock, with an underwriters option to purchase up to an additional 6M shares.
I can't believe Rice can sell 40 shares of stock, let alone 40 million.
Has Rice ever even made 10 cents operating?
I doubt it-- even with their tortured accounting hiding the true costs of Rice misadventure and boondoggle.
rice will be bought up by a bigger player when the time is right......fire sale look for southwestern to be the buyer or EQT
I have 1 well with Rice they curtailed it about a year and half ago in Greene county Pa. have made a little over a hundred in this time span. Hope springs eternal....think my spring has gone dry...:(
Ding Ding Ding
We have a winner
MM......you nailed this one!
Will this be a good thing for those of us that have been screwed by Vantage or will it be more of the same old "lets screw the landowner:?? Any viable input is appreciated.
Who knows???? I have just about given up. guess we could go to our wells camp out and watch just how much is taken every day....my well is dry gas. but it was a good one when first drilled then CHK sold out to rice and things have gone down hill since....
email@example.com Has always been good at getting back with me.