Subsequent Events

9 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

        On July 31, 2020, the Company completed its acquisition of certain upstream assets and midstream gathering assets in Pennsylvania from SWEPI LP, a subsidiary of Royal Dutch Shell plc (“Shell”) for total consideration of $503.9 million, including a down payment of $27.1 million paid at the signing of the purchase and sale agreement in May 2020. The purchase price reflects an effective date of January 1, 2020. The acquisition was financed with a combination of debt and equity, as discussed above in Note 7 — Capitalization. As part of the transaction, the Company acquired over 400,000 net acres in Appalachia, with approximately 200,000 net acres in Tioga County. The net proved developed natural gas reserves associated with this acquisition are estimated to be approximately 700 Bcf. In addition, the Company acquired gathering pipelines and related compression, water pipelines, and associated water handling infrastructure, all of which currently support Shell’s Tioga County production operations. These gathering facilities are interconnected with various interstate pipelines, including the Company’s Empire pipeline systems, with the potential to tie into the Company’s existing Covington gathering system. Given the contiguous nature of the assets, the Company expects to fully integrate the assets into its existing operations in Tioga County, Pennsylvania. This will drive operating cost synergies in both the Exploration and Production and Gathering segments.

        The Company also completed the sale of NFR's commercial and industrial gas contracts in New York and Pennsylvania and certain other assets to Marathon Power LLC on August 1, 2020. The sale did not have a material impact to the Company's financial statements. The divestiture reflects the Company's decision to focus on other strategic areas of the energy market.

        On August 5, 2020, the Company entered into a purchase and sale agreement to sell certain timber and other assets in Pennsylvania to Lyme Emporium Highlands III LLC and Lyme Allegheny Land Company II LLC for approximately $115.7 million, subject to closing adjustments. The transaction is expected to close on or before November 1, 2020. The Company intends to use the proceeds from this sale to complete the permanent financing of the acquisition of upstream assets and midstream gathering assets from Shell, which is discussed above.