EQT and Equitrans $35 billion Gaz Merger

EQT and Equitrans $35 billion Gaz Merger

In a seismic move shaking the energy industry to its core, EQT Corp. and Equitrans Midstream Corp. have declared their merger, sculpting a behemoth with a valuation of $35 billion. The marriage, steered by legal titans Kirkland & Ellis LLP and Latham & Watkins LLP, heralds the birth of a natural gas colossus primed to dominate the global energy arena.

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EQT and Equitrans $35 billion Gaz Merger : A Colossal Fusion

With boards from both entities giving the nod, the merger entails Equitrans shareholders exchanging each outstanding share for 0.3504 shares of EQT stock, equating to $12.50 per Equitrans share. Equitrans’ shares surged to $11.33, up by 1.6%, following the announcement, riding the crest of anticipation.

A Strategic Symphony

This strategic alliance sets the stage for EQT, a natural gas powerhouse focused on the Appalachian Basin, to join forces with Equitrans, the erstwhile midstream pipeline arm of EQT. Post-spinoff in 2018, Equitrans charted its own course, guided by activist investor Jana Partners. Thomas F. Karam, Equitrans’ executive chair, hails the merger as transformative, poised to reshape the natural gas panorama.

A Symphony of Infrastructure

The amalgamated entity will wield an impressive arsenal, with over 2,000 miles of pipeline infrastructure at its command, ensuring seamless production and transportation of natural gas.

EQT and Equitrans $35 billion Gaz Merger : A Regulatory Odyssey

Anticipated to close in the fourth quarter of 2024, the merger is subject to the green light from shareholders and regulatory bodies, navigating a path laden with scrutiny and anticipation.

A Chorus of Concerns

This consolidation echoes a resounding trend in the oil and gas realm, drawing the gaze of lawmakers. Fifty legislators recently urged the Federal Trade Commission to scrutinize such mergers for potential anti-competitive ramifications. The echo of this call resonates louder as earlier mergers, such as Chesapeake Energy and Southwestern Energy, unite to sculpt a $24 billion natural gas titan.

The Architects Behind the Curtain

Guiding this monumental fusion, Guggenheim Securities spearheads as the lead financial adviser to EQT, while Barclays and Citi lend their expertise to Equitrans. Behind the legal maneuvers stand formidable teams, with Latham & Watkins LLP boasting a lineup led by corporate partners Ryan Maierson and Nick Dhesi, along with a cadre of legal luminaries across various disciplines.