EQT Corporation to acquire Equitrans Midstream in all-stock transaction

EQT Corporation (EQT) and Equitrans Midstream (ETRN) announced that they have entered into a definitive merger agreement creating a vertically integrated natural gas business, with an initial enterprise value over $35B. Under the terms of the merger agreement, unanimously approved by the boards of both companies, EQT will acquire Equitrans in an all-stock transaction. Each outstanding share of Equitrans common stock will be exchanged for 0.3504 shares of EQT common stock, representing an implied value of $12.50 per Equitrans share based on the volume weighted average price of EQT common stock for the 30 days ending on March 8. As a result of the transaction, EQT’s existing shareholders are expected to own approximately 74% of the combined company and Equitrans’ shareholders are expected to own approximately 26%. The transaction is expected to close during the fourth quarter of 2024, subject to required regulatory approvals and clearances, approval of the transaction by shareholders of both EQT and Equitrans, and other customary closing conditions. The transaction closing is contingent on FERC authorizing MVP to commence service. Upon the closing of the transaction, three representatives from Equitrans will join EQT’s board of directors. EQT’s executive management team will lead the combined company with headquarters remaining in Pittsburgh, Pennsylvania.