EQT, Chesapeake Are Among Suitors for Alta Resources
(Bloomberg) -- Alta Resources, a closely held natural gas explorer, has drawn interest from potential buyers including EQT Corp. and Chesapeake Energy Corp., according to people familiar with the matter.
EQT and Chesapeake are weighing offers for Houston-based Alta that could value the company at more than $3 billion, said the people, who asked to not be identified because the matter is private. Alta, whose backers include the Blackstone Group Inc.’s credit arm, is working with an adviser on a potential sale, the people said.
Representatives for EQT, Chesapeake and Blackstone declined to comment. Representatives for Alta didn’t respond to requests for comment.
The sale comes as the fragmented natural gas industry looks to consolidate amid depressed prices and investor calls to improve cash flows and returns. Merging with peers makes sense, EQT Chief Executive Officer Toby Rice told Bloomberg News in November, after his company agreed to buy Chevron Corp.’s Appalachian assets for $735 million
Alta, led by Chief Executive Officer Joseph Greenberg, has drilling right on about 239,000 net acres in the Marcellus Shale, according to its website.
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