EQT Corp., the largest producer of natural gas in the United States, announced it has entered into a definitive agreement to acquire the upstream and midstream assets of Olympus Energy in a transaction valued at $1.8 billion. The acquisition significantly bolsters EQT’s footprint in the core of the Marcellus Shale, particularly in southwest Pennsylvania.

The deal encompasses roughly 90,000 net acres and production averaging 500 million cubic feet of natural gas per day. EQT said the assets being acquired are expected to deliver substantial long-term value and are complementary to its existing operations. The transaction will be paid for through a mix of approximately 26 million shares of EQT common stock, valued at $1.3 billion, and $500 million in cash. EQT plans to fund the cash portion using its available liquidity and borrowings from its revolving credit facility.

The assets are projected to generate an average annual adjusted EBITDA of approximately $530 million and unlevered free cash flow of about $270 million over the next three years, based on current strip pricing. These metrics imply an adjusted EBITDA multiple of 3.4 times and an unlevered free cash flow yield of roughly 15%. EQT emphasized the value proposition of the deal, highlighting that Olympus’ integrated infrastructure and development inventory align well with EQT’s leading cost structure.

Olympus Energy’s asset base includes over 10 years of high-quality Marcellus drilling inventory, in addition to seven years of prospective development potential in the Utica Shale formation. The company’s infrastructure is designed to support scalable development and cost efficiency, making it a strategic fit with EQT’s operational model.

EQT’s board of directors has unanimously approved the transaction, which is expected to close in the early part of the third quarter of 2025, subject to regulatory approvals and customary closing conditions.

Moelis & Co. acted as lead financial advisor to EQT, while Greenhill, a Mizuho affiliate, also provided financial advice. Vinson & Elkins served as EQT’s legal counsel. On the Olympus side, Jefferies was the financial advisor, and Kirkland & Ellis served as legal counsel.

In a related strategic move, EQT previously formed a joint venture with Blackstone Credit & Insurance (BXCI) in November 2024. The JV includes EQT’s stakes in several critical infrastructure assets such as the Mountain Valley Pipeline, associated transmission and storage facilities, and the Hammerhead Pipeline. BXCI committed $3.5 billion in cash for a non-controlling equity interest in the joint venture, which is valued at $8.8 billion.

The Olympus acquisition reinforces EQT’s commitment to scale-driven efficiency and financial discipline while further consolidating its leadership in the Appalachian Basin.