EQT Corporation announces acquisition of Olympus Energy upstream and midstream assets for US$1.8 billion
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
EQT Corp. has announced that it has entered into an agreement to acquire upstream and midstream assets from Olympus Energy for US$1.8 billion; purchase price equates to ~3.4x adjusted EBITDA multiple and ~15% unlevered free cash flow yield pro-forma year-end 2025 net debt forecasted to be ~US$7 billion at recent strip, comfortably below US$7.5 billion target.
The announcement comes as EQT increases its 2025 production guidance by 25 billion f3e following the acquisition of gathering, transmission and storage assets from Equitrans Midstream Corporation.
President and CEO Toby Z. Rice commented: "EQT is off to an exceptional start in 2025, with the first quarter generating the strongest financial results in recent company history. Seamless coordination across our integrated midstream and upstream assets resulted in volumes at the high end of guidance, and our tactical production response opening chokes into peak winter prices drove higher realisations. Along with lower-than-expected capital spending, EQT generated more than US$1 billion of free cash flow in the first quarter alone."
Rice continued, "We are raising 2025 production guidance by 25 billion f3e while reducing the mid-point of 2025 capital spending by US$25 million due to strong well performance, ongoing efficiency gains and additional Equitrans Midstream synergy capture. This underscores the tremendous momentum we're experiencing at EQT and we see no signs of slowing down as we look ahead."
Rice added, "We are also announcing that we have entered into an agreement for the accretive bolt-on acquisition of the upstream and midstream assets of Olympus Energy, which has 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. The purchase price equates to an approximately 15% unlevered free cash flow yield, highlighting attractive value for EQT shareholders. Additionally, the assets are positioned adjacent to several proposed power generation projects, providing potential strategic value upside."
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The April 2025 issue of World Pipelines includes a keynote article on Europe’s midstream sector, and technical articles on pipeline construction, cathodic protection, damage and defect assessment, and pipeline integrity. Also included: a major feature on pipelaying and vessels, with contributions on offshore pipelay, subsea umbilicals and emergency pipeline repair.
Read the article online at: https://www.worldpipelines.com/business-news/23042025/eqt-corporation-announces-acquisition-of-olympus-energy-upstream-and-midstream-assets-for-us18-billion/
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