By Dominic Chopping

Equinor will pay $500 million in cash to EQT Corp. after the companies agreed to swap some onshore U.S. shale gas assets.

The Norwegian energy major will swap its stake in the Marcellus and Utica shale formations in Ohio for EQT's 40% stake in the Northern Marcellus shale formation in Pennsylvania, it said Monday.

Equinor will make the cash payment to EQT to balance the overall transaction, with its new assets contributing to growing cash flows, reducing carbon dioxide emissions intensity in its international portfolio and positioning it to leverage an expected positive development in the U.S. gas market.

To cover pre-existing gas sales commitments, Equinor will enter into a gas buy-back agreement with EQT, it added.

"With this transaction, we continue to high-grade the U.S. portfolio and improve profitability by strengthening our gas position in the most robust part of the Appalachian Basin," said Philippe Mathieu, executive vice president for exploration and production international at Equinor.

"The proposed swap improves portfolio robustness with an expected reduction in well break-evens and upstream carbon intensity. This also means that we have now fully exited all operated positions onshore U.S."

Write to Dominic Chopping at

(END) Dow Jones Newswires

04-15-24 0904ET