U.S natural gas producer EQT Corp. has announced a definitive merger agreement with Equitrans Midstream, a U.S. energy company engaged in the pipeline transportation of natural gas and natural gas liquids, creating a premier vertically integrated natural gas business with an initial enterprise value of more than $35 billion.
EQT will acquire Equitrans in an all-stock transaction. According to news sources, the deal is valued at $13 billion to $14 billion, and EQT will pay off Equitrans’ debt of between $7.6 billion and $8 billion and will sell assets to reduce borrowings.
As a result of the transaction, EQT's existing shareholders are expected to own approximately 74 percent of the combined company, and Equitrans’ shareholders are expected to own approximately 26 percent. The combined company will have a peer-leading cost of supply, durable free cash flow in all price environments and significant synergy potential.
“Equitrans is the most strategic and tran
