EQT Closes $5.45 Billion Acquisition of Equitrans Midstream
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EQT Corporation said it has closed its acquisition of Equitrans Midstream.
“We are excited to complete this highly strategic transaction significantly ahead of our original timeline, and welcome both Equitrans employees and shareholders to EQT. The early close resulted in nearly $150 million of savings relative to our original forecast and brings forward our de-leveraging and synergy capture timetables,” said Toby Rice, president and CEO of EQT.
“We are wasting no time unleashing our integration team, which has a successful track record of rapidly integrating three large-scale acquisitions over the past several years, to efficiently combine these organizations. This combination leaves EQT in a tremendously advantaged position to compete and win as we enter the global era of natural gas,” added Rice.
The merger of EQT and Equitrans creates America’s only large-scale, vertically integrated natural gas business. The combined company is projected to have an unlevered NYMEX free cash flow breakeven price of approximately $2.00 per MMBtu, which is at the low end of the North American cost curve and ensures robust free cash flow generation through all parts of the commodity cycle.
EQT has identified more than $425 million of annual synergies associated with the combination, which upon realization could drive even further downside to EQT’s long-term free cash flow breakeven price.
The integration of Equitrans’ midstream assets immediately improves the economics of EQT’s approximately 4,000 drilling locations, unlocking unrivaled terminal value at a time when demand for natural gas is inflecting both domestically and abroad.
In conjunction with the closing, three former Equitrans directors, Vicky Bailey, Thomas Karam, and Robert Vagt, have joined the EQT board of directors.
EQT Corporation is a leading independent natural gas production company with operations focused in the cores of the Marcellus and Utica Shales in the Appalachian Basin. They are dedicated to responsibly developing a world-class asset base and being the operator of choice for stakeholders. By leveraging a culture that prioritizes operational efficiency, technology, and sustainability, they seek to continuously improve the way they produce environmentally responsible, reliable, and low-cost energy. They have a longstanding commitment to the safety of employees, contractors, and communities, and to the reduction of its overall environmental footprint.
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