EQT expands Marcellus footprint

Olympus Energy has assembled a large contiguous acreage position in the Appalachian Basin. It currently operates in Allegheny and Westmoreland counties, with an acreage position that expands into Butler and Washington counties. The company’s position consists of approximately 100,000 net acres positioned in Southwestern Pennsylvania’s dry gas core. (Image: Olympus Energy)

EQT Corp. has announced a definitive agreement to acquire the upstream and midstream assets of Olympus Energy for $1.8 billion, a move that significantly strengthens EQT’s position in the core of the Marcellus Shale.

The deal includes 90,000 net acres adjacent to EQT’s existing holdings in Southwest Pennsylvania, currently producing approximately 500 million cubic feet of natural gas per day. The assets come with over a decade of high-return drilling inventory in the Marcellus, with additional upside in the deeper Utica formation.

Consideration for the acquisition includes approximately 26 million EQT shares, valued at $1.3 billion based on a recent 20-day average price, and $500 million in cash. EQT said it plans to fund the cash portion through a combination of existing cash on hand and borrowings from its revolving credit facility.

EQT expects the Olympus assets to deliver an average of $530 million in annual adjusted EBITDA and $270 million in unlevered free cash flow over the next three years, assuming current strip prices. The valuation equates to a 3.4x EBITDA multiple and a 15% free cash flow yield.

Strategic expansion in Appalachia

“This acquisition builds on our strategy of consolidating high-quality, contiguous acreage in Appalachia,” said Toby Z. Rice, President and CEO of EQT. “Olympus offers one of the few remaining scale positions with material infrastructure and drilling inventory in the basin. It enhances our capital efficiency, drives additional cost synergies, and supports our goal of being the lowest-cost gas producer in North America.”

Olympus Energy, formerly Huntley & Huntley Energy Exploration, is a privately held natural gas producer focused on the Appalachian Basin. Headquartered in Canonsburg, Pa., Olympus is backed by Blackstone Credit and operates a vertically integrated model that includes drilling, completions, midstream, and land management. The company has developed a strategic footprint in Washington and Westmoreland counties, an area known for dry gas and liquids-rich potential.

The acquisition includes midstream assets operated by Hyperion Midstream and land holdings under Bow & Arrow Land Co. Together, they offer EQT synergies in gathering, water logistics, and development planning.

EQT’s move comes at a time when natural gas markets are experiencing structural shifts. Recent price volatility, supply-demand rebalancing, and LNG infrastructure growth are reshaping North American gas strategies. With the Olympus acquisition, EQT strengthens its ability to generate free cash flow at low break-even prices, aligning with its ongoing pressure management and operational efficiency programs.

“Olympus’ assets have a breakeven profile that complements our peer-leading cost structure,” said Rice. “This transaction enhances our core inventory and supports durable returns under a range of market scenarios.”

The deal was unanimously approved by EQT’s Board of Directors and is expected to close in the third quarter of 2025, pending regulatory approval.

2025 guidance and growth capital

In conjunction with the acquisition, EQT raised its full-year 2025 production guidance by 25 Bcfe to 2,200–2,300 Bcfe. The company reaffirmed its maintenance capital budget of $1.95–$2.07 billion and will continue targeting strategic growth investments, including a pressure reduction initiative and water infrastructure projects.

In total, EQT expects to turn in line 95–120 net wells in 2025, including up to 50 wells in the second quarter. Strategic capital expenditures remain in the $350–$380 million range.

EQT Corporation is the largest producer of natural gas in the United States, with operations focused in the Appalachian Basin. Headquartered in Pittsburgh, EQT operates an extensive upstream portfolio in Pennsylvania, West Virginia, and Ohio. The company has made a series of strategic acquisitions in recent years, enhancing its scale, cost competitiveness, and free cash flow generation.