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RIL to sell Marcellus Shale asset for $250 mln

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Capital Market
Last Updated : Feb 04 2021 | 11:50 AM IST

Reliance Marcellus, LLC (RMLLC), a wholly-owned subsidiary of Reliance Industries (RIL), signed agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of south-western Pennsylvania.

These assets, which are currently operated by various affiliates of EQT Corporation (EQT), have been agreed to be sold to Northern Oil and Gas, Inc (NOG), a Delaware corporation, for a consideration of $250 million cash and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of $14 per common share in next seven years.

A Purchase and Sale Agreement (PSA) has been signed between RMLLC and NOG on 3 February 2021 for this sale and the transaction is subject to customary terms and conditions of closing.

Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

On a consolidated basis, RIL reported 12.5% rise in net profit to Rs 13,101 crore on 23.12% decline in net sales to Rs 117,860 crore in Q3 December 2020 over Q3 December 2019.

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RIL was up 0.02% to Rs 1930.65.

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First Published: Feb 04 2021 | 11:09 AM IST

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