EQT has agreed to acquire the upstream and midstream assets of Olympus Energy, Hyperion Midstream, and Bow & Arrow Land, collectively referred to as Olympus Energy, in a move to strengthen its operations in the Marcellus Shale in the US.
The acquisition is valued at $1.8bn and comprises a mix of EQT common stock and cash.
Under the agreement, approximately $1.3bn of the total consideration will be paid in EQT stock, equal to around 26 million shares based on the 20-day volume-weighted average price as of 21 April 2025.
The remaining $500m will be paid in cash, subject to standard purchase price adjustments. EQT plans to finance the cash portion through a combination of existing cash reserves and borrowings under its revolving credit facility.
The transaction includes a contiguous 90,000 net acre position in Southwest Pennsylvania, directly adjacent to EQT’s current operations. These assets contribute approximately 500 million cubic feet of natural gas per day (MMcf/d) in net production.
The company expects the acquisition to deliver average annual adjusted EBITDA of $530m and unlevered free cash flow of $270m over the next three years, based on strip pricing as of 16 April 2025.
The implied valuation metrics indicate an adjusted EBITDA multiple of approximately 3.4 times and a free cash flow yield of around 15%.
Olympus Energy’s operations include over a decade of Marcellus inventory at maintenance production levels, with an additional seven years of potential from the Utica shale. The platform’s cost structure is said to align closely with EQT’s existing operations, supporting efficient free cash flow generation.
Subject to regulatory clearance and customary closing conditions, the transaction is expected to complete in the early part of Q3 2025. The acquisition has been unanimously approved by EQT’s board of directors.
Moelis & Company is acting as lead financial adviser to EQT, with Greenhill, a Mizuho affiliate, also providing advisory support. Legal counsel is being provided by Vinson & Elkins.
On Olympus Energy’s side, Jefferies is serving as financial adviser, and Kirkland & Ellis is acting as legal counsel.
Alongside the acquisition announcement, EQT has reported its financial and operational performance for Q1 2025. The company recorded sales volume of 571 billion cubic feet equivalent (Bcfe), which was at the upper end of its guidance.
EQT attributed this outcome to strong well productivity and minimal weather-related disruptions, supported by its integrated midstream infrastructure.
Following the results, EQT has revised its full-year 2025 production guidance upwards by 25Bcfe.
Simultaneously, it has reduced the midpoint of its capital expenditure forecast by $25m. The company attributed this to improved operational efficiencies, enhanced well performance, and synergies from the recently acquired Equitrans Midstream’s gathering, transmission, and storage assets.
EQT president and CEO Toby Rice said: “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.”
