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EQT Corporation Completes Acquisition of Equitrans Midstream

Author

Slice of Energy Team
July 25, 2024

Key Highlights:

  • Completion of strategic acquisition ahead of schedule

  • Creation of America's only large-scale, vertically integrated natural gas business

  • Projected NYMEX free cash flow breakeven price of $2.00 per MMBtu

  • Over $425 million in annual synergies identified

  • Immediate improvement in the economics of 4,000 drilling locations

Source (PR Newswire)

Notable Quote:

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"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. 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."

Toby Z. Rice, President and CEO at EQT

Our Take:

The completion of EQT Corporation's acquisition of Equitrans Midstream Corporation marks a significant milestone in the energy sector, creating a unique, large-scale, vertically integrated natural gas business. This strategic move positions EQT at the forefront of the industry with a competitive edge in cost-efficiency and operational synergy. The projected breakeven price of $2.00 per MMBtu demonstrates EQT's robust financial health and capacity to generate substantial free cash flow across all market conditions. Additionally, the immediate enhancement of 4,000 drilling locations' economics is a testament to the strategic foresight underpinning this merger. The inclusion of seasoned directors from Equitrans into EQT's board further strengthens the leadership and governance of the combined entity. This merger not only promises enhanced shareholder value but also solidifies EQT's standing as a pivotal player in the evolving global natural gas market.