Rice Energy acquires Vantage Energy

Rice Energy Inc. (Rice) has entered into a purchase and sale agreement (PSA) to acquire Vantage Energy, LLC and Vantage Energy II, LLC (Vantage Energy) for approximately $2.7 B, including the assumption of debt. In connection with the acquisition, Rice Midstream Partners LP (RMP) will purchase the acquired midstream assets from Rice Energy for $600 MM. The transaction is expected to close in Q4 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 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. Q2 2016 net production of the acquired assets was 399 MMcfd (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.

Following this transaction, Rice will control approximately 231,000 net acres in the Marcellus and Ohio Utica cores with an inventory of 1,164 drilling locations that generate average single well returns of approximately 95% at strip pricing. Similarly, RMP will control one of the largest and most concentrated core dry gas acreage dedications in the Marcellus Shale, covering approximately 199,000 acres in Washington and Greene Counties.

• Most Read
• Most Commented