National Fuel Subsidiary Seneca Resources Acquires Shell's Pennsylvania Assets

Updated 1 year 1 month ago

Royal Dutch Shell reached an agreement with National Fuel Gas including subsidiary Seneca Resources to sell its Appalachia shale gas position for $541 million. The consideration is intended to be paid in cash, but National Fuel Gas has the option to provide up to $150 million of this in common stock. This includes 450,000 net leasehold acres across Pennsylvania with 350 producing Marcellus and Utica wells in Tioga County and associated facilities and midstream infrastructure. Current production is 250 MMcf/d. The deal closed at the end of July 2020 with an effective date of January 1, 2020. RBC Richardson Barr served as an advisor to Shell.

David Bauer, National Fuel Gas President & CEO

With the integration of these high-quality, contiguous assets in one of the most prolific areas of Appalachia into our existing operations, we expect to generate meaningful free cash flow in our upstream and midstream businesses.