EQT Finalizes Acquisition of Equitrans Midstream

EQT Corporation has finalized its acquisition of Equitrans Midstream Corporation (Equitrans), resulting in the formation of America’s sole large-scale, vertically integrated natural gas enterprise. This strategic merger positions the combined entity with a projected unlevered NYMEX free cash flow breakeven price of around $2.00 per MMBtu, placing it at the lower end of the North American cost curve. This low-cost profile ensures the company can maintain strong free cash flow generation across various stages of the commodity cycle, enhancing its resilience and operational efficiency in the natural gas sector.

EQT has identified over $425 million in annual synergies from its acquisition of Equitrans, which, once fully realized, could further reduce EQT's long-term free cash flow breakeven price. The integration of Equitrans' midstream assets enhances the economics of EQT's approximately 4,000 drilling locations, unlocking exceptional terminal value. This strategic move positions EQT advantageously amid increasing domestic and international natural gas demand, driving greater operational efficiency and financial performance as market dynamics evolve.

Toby Z. Rice, President and CEO of EQT, expressed enthusiasm about the successful completion of a key strategic transaction well ahead of the originally planned timeline. He highlighted the financial benefits of the early closure, which resulted in approximately $150 million in savings relative to the initial forecasts. Rice emphasized that this accomplishment brings forward the timelines for de-leveraging the company and realizing synergies from the acquisition. By integrating Equitrans employees and shareholders ahead of schedule, EQT aims to strengthen its operational efficiency and financial position, setting the stage for more robust future growth.

Rice further underscored the company's commitment to swift and effective integration, leveraging the expertise of their integration team, which has a proven track record in merging large-scale acquisitions. The team’s rapid integration of previous acquisitions has been a key factor in EQT’s strategic expansion. This new combination positions EQT advantageously as it enters a competitive global natural gas market, prepared to capitalize on emerging opportunities and drive long-term success.

In alignment with the merger's closing and as stipulated in the merger agreement, three former Equitrans directors—Vicky A. Bailey, Thomas F. Karam, and Robert F. Vagt—have been appointed to the EQT Board of Directors, effective immediately. This transition integrates their extensive expertise and insights into the combined company’s strategic oversight, enhancing governance and facilitating a seamless merger integration process. Their addition to the board reflects a commitment to leveraging experienced leadership in driving the future direction and success of EQT post-acquisition.