EQT Completes Equitrans Midstream Acquisition
EQT Corp. has finalized its acquisition of Equitrans Midstream Corp., marking a significant shift in the natural gas sector. This merger creates a major vertically integrated natural gas company in the U.S.
The combined entity is expected to have a low breakeven price of around $2.00 per MMBtu, positioning it at the lower end of North America's cost curve. This efficiency should enhance free cash flow across the commodity cycle. EQT anticipates over $425 million in annual synergies from this deal, potentially reducing long-term breakeven costs even further.
RELATED: EQT Reports Smaller-than-Expected Q2 Loss, Boosted by Higher Sales Volumes
Integrating Equitrans' assets enhances the value of EQT's 4,000 drilling locations, aligning with rising domestic and global natural gas demand. EQT’s President and CEO, Toby Z. Rice, noted that the transaction was completed ahead of schedule, saving nearly $150 million compared to initial forecasts. He emphasized the swift deployment of the integration team, leveraging their experience from previous acquisitions to streamline the process.
As part of the merger, former Equitrans directors Vicky A. Bailey, Thomas F. Karam, and Robert F. Vagt have joined EQT’s Board of Directors.
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