Rice Energy Inc. to Acquire Marcellus Shale Gathering Assets for $110 Million
CANONSBURG, Pa., Feb. 12, 2014 /PRNewswire/ -- Rice Energy Inc. (NYSE: RICE) (the "Company") today announced the execution of a purchase and sale agreement whereby Rice Poseidon Midstream LLC, a wholly owned subsidiary of the Company, has agreed to acquire gathering assets in eastern Washington and Greene Counties, Pennsylvania, from M3 Appalachia Gathering LLC, a wholly owned subsidiary of M3 Midstream LLC, for $110 million in cash, subject to customary purchase price adjustments.
The assets to be acquired consist of a 28-mile, 6"-16" gathering system in eastern Washington County, Pennsylvania (the "northern system"), and permits and rights of way in Washingtonand Greene Counties, Pennsylvania, necessary to construct an 18-mile, 30" gathering system connecting the northern system to the Texas Eastern pipeline (the "southern system"). The northern system is supported by long-term contracts with acreage dedications covering approximately 20,000 acres from third parties. Once fully constructed, the acquired systems are expected to have an aggregate capacity of over 1 Bcf/d.