EQT Corp. is acquiring upstream and midstream assets from private Marcellus E&P Olympus Energy for $1.8 billion.

The deal includes $500 million in cash and approximately 26 million shares of EQT common stock valued at $1.3 billion, the company announced April 22 in first-quarter earnings.

Blackstone-backed Olympus owns 90,000 net acres in southwest Pennsylvania, adjacent to EQT’s core Marcellus portfolio. Net production averages 500 MMcf/d.

Olympus holds 165 gross Marcellus drilling locations; 60 additional gross locations are in the deeper Utica bench.

At maintenance activity levels, Olympus holds over a decade of high-quality Marcellus inventory and another seven years of Utica upside.

The deal is expected to close in the third quarter.

Moelis & Co. served as lead financial adviser to EQT, and Greenhill, a Mizuho affiliate, served as financial adviser. Vinson & Elkins LLP is serving as EQT's legal counsel.

Olympus was represented by Jefferies LLC as financial adviser and Kirkland & Ellis as legal counsel.

EQT produced 571 Bcfe, or 6.34 Bcfe/d, during the first quarter.

Appalachia M&A

Pittsburgh-based EQT continues to expand its Appalachian empire through upstream and midstream M&A.

Last year, EQT closed a $5.45 billion acquisition of Equitrans Midstream, the owner of Mountain Valley Pipeline.

EQT later formed a joint venture with Blackstone Credit & Insurance in which Blackstone took a non-controlling stake in Mountain Valley Pipeline.

EQT sold a non-operated Marcellus package to Equinor for $1.25 billion to pay down debt from the Equitrans deal.

 EQT added upstream assets and additional midstream interests through deals with Tug Hill and XcL Midstream in 2023.

The Tug Hill acquisition added about 800 MMcf/d of production.

Fellow Marcellus E&P CNX Resources expanded its footprint with a $505 million acquisition of Apex Energy II last year. Apex was owned by Carnelian Energy Capital.

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