EQT announces accretive acquisition of certain assets from Olympus Energy

The Company has entered into a purchase agreement with Olympus Energy Holdings Hyperion Midstream and Bow & Arrow Land Company, collectively, Olympus Energy, pursuant to which the Company has agreed to acquire the upstream and midstream assets of Olympus Energy for total consideration of $1.8B. Consideration is composed of approximately 26M shares of EQT common stock, representing $1.3B based on the 20-day volume-weighted average price as of April 21, and $500M in cash, as adjusted pursuant to customary closing purchase price adjustments. The Company expects to fund the cash consideration with cash on hand and borrowings under EQT’s revolving credit facility. The assets comprise a vertically integrated, contiguous 90,000 net acre position offsetting the Company’s existing core acreage in Southwest Pennsylvania with net production of approximately 500 MMcf/d. The Company expects the assets to generate average annual adjusted EBITDA and unlevered free cash flow over the next three years of approximately $530M and $270M, respectively, at April 16, strip pricing, implying an attractive ~3.4x adjusted EBITDA multiple and ~15% unlevered free cash flow yield. The transaction is expected to close early in the Q3, subject to regulatory approval and the satisfaction of customary closing conditions. The transaction was unanimously approved by the Company’s Board of Directors. Moelis & Company served as lead financial advisor and Greenhill, a Mizuho affiliate, served as financial advisor to EQT, and Vinson & Elkins is serving as EQT’s legal counsel on the transaction. Jefferies served as financial advisor to Olympus Energy, and Kirkland & Ellis is serving as legal counsel to Olympus Energy.