The US natural gas producer EQT Corporation has agreed to buy the pipeline developer Equitrans Midstream for an equity value of about US$5.5bn. The all-stock deal values Equitrans, which is EQT’s former pipeline unit, at about US$14bn, including debt. The two companies have entered into a definitive merger agreement creating a vertically integrated natural gas business, with an initial enterprise value over US$35bn. The deal is expected to close in the fourth quarter of 2024.
The merger will provide EQT with over 2,000 miles (3,219 km) of pipeline infrastructure with overlap with EQT's upstream operations and existing midstream assets. The new combined company will have 27.6 Tcf (around 780 bcm) of proved reserves across 1.9 million acres (7,689 km2), with 6.3 Bcf/d (178 mcm/d or 65 bcm/year) of net production and over 8 Bcfe/d (227 mcm/d or 83 bcm/year) of gathering throughput across over 3,000 miles (4,828 km) of pipelines.
Equitrans, which is a former unit of EQT, notably owns the Mountain Valley Pipeline project, which is currently years behind schedule due to legal battles and local opposition. The project, due to be completed in the second quarter of 2024, will bring gas from the Marcellus shale basin in Appalachia to markets in southeastern US States. Equitrans split from EQT in 2018 and retained its midstream assets, while EQT, which is the top gas producer in the US, remained involved in exploration and production.