RIL subsidiary to sell shale play assets in Pennsylvania

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

These assets, currently operated by various affiliates of EQT Corporation (EQT), will be sold to Northern Oil and Gas, Inc (NOG), a Delaware corporation, for $250 million cash and warrants that give entitlement to buy 3.25 million NOG common shares at $14 per common share in next seven years.

The agreement between RMLLC and NOG was signed on February 3. Citigroup Global Markets, Inc, acted as financial adviser to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.

RIL, which is India's largest private sector company, clocked in a consolidated turnover of Rs 6,59,205 crore and a net profit of Rs 39,880 crore for FY20. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

The company last month reported 12.5 per cent year-on-year growth in consolidated net profit at Rs 13,101 crore for the third quarter ended December 31, 2020, on the back of strong rebound across all businesses. The consolidated revenue fell by 22 per cent to Rs 128,450 crore in Q3 as compared to Rs 160,447 crore in the year-ago period.

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