Natural gas producer EQT Corporation has agreed to buy upstream and midstream assets of Olympus Energy for $1.8 billion in a deal that would bolster EQT’s inventory in the Marcellus and Utica shale gas regions.
The total consideration of $1.8 billion is composed of approximately 26 million shares of EQT common stock, representing $1.3 billion based on the 20-day volume-weighted average price as of April 21, 2025, and $500 million in cash, as adjusted pursuant to customary closing purchase price adjustments, EQT said in a press release.
EQT expects to close the transaction early in the third quarter of 2025, subject to regulatory approval and the satisfaction of customary closing conditions.
The bolt-on acquisition of the upstream and midstream assets of Olympus Energy allows EQT to again access to a vertically integrated asset base and an unlevered free cash flow breakeven price comparable to EQT’s peer leading position at the low end of the cost curve, EQT President and CEO Toby Z. Rice said.
Olympus Energy has over 10 years of high-quality Marcellus inventory at maintenance activity levels, with an additional 7 years of upside from the Utica.
The assets which EQT is buying are positioned adjacent to several proposed power generation projects, providing potential strategic value upside, the company said.
At the end of 2024, EQ’s Rice said he was bullish on the short and long-term gas demand prospects as power utilities scramble to provide electricity to the new data centers.
EQT looks to tap new gas customers in Virginia, the center of the AI boom, Rice told Bloomberg in an interview in October.
“We’ve got a lot of these retired coal facilities that have existing electric infrastructure already built. You just need to put in the power plant, switch that coal with natural gas and it could be a faster opportunity,” Rice said, referring to the need for a lot of additional power for AI data centers.
By Tsvetana Paraskova for Oilprice.com
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