Published on 12 Mar 2024 on Zacks via Yahoo Finance

EQT CEO Sees Major AI Opportunity in $5.5B Equitrans Deal

EQT Corporation EQT has announced its agreement to acquire Equitrans Midstream Corporation ETRN in an all-stock deal valued at approximately $14 billion, including debt. The merger came amid a surge in merger activity within the U.S. shale oil and gas industry, with companies seeking greater scale and cost efficiencies to withstand volatile commodity prices.

EQT aims to enhance its position as a low-cost natural gas producer by leveraging Equitrans Midstream's assets, which include more than 2,000 miles of pipelines. This move is anticipated to result in cost reductions in both production and transportation of natural gas to the market, providing the company with a competitive edge.

EQT's chief financial officer, Jeremy Knop, emphasized the importance of being at the low end of the cost curve in the current market environment during a conference call with analysts. However, investors’ response to the deal has been mixed, with concerns raised about the combined company's $13.4 billion in debt and potential synergies of $250 million per year.