Quantum Energy Partners has filed a petition urging the Federal Trade Commission (FTC) to set aside the consent order issued in connection with the $5.2 billion natural gas deal between Quantum and EQT Corp. involving oil and gas assets in Appalachia.
The original consent order, entered by the FTC in 2023, addressed concerns related to board entanglements and potential anticompetitive information sharing arising from the 2022 cash-and-stock transaction. Under the deal, EQT acquired significant assets from Quantum through a $2.6 billion cash payment and $2.6 billion in stock.
The FTC’s consent order restricted Quantum from holding a seat on EQT’s board, mandated divestiture of EQT shares by Quantum, and required the unwinding of a joint venture, The Mineral Company LLC, between the two entities.
In the petition filed in late June, Quantum contends that changed circumstances warrant reopening and lifting the FTC order. The company highlights that the purchase agreement was amended nearly two years ago to resolve shared board member concerns, the joint venture was dissolved in February 2024, and Quantum completed its divestiture of EQT shares by early October—years ahead of the original deadline.
Quantum asserts that the remaining obligations, including prior FTC approval for acquiring EQT shares in Appalachia, are unnecessary and redundant given existing regulatory frameworks such as the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Quantum also points to the FTC’s decision not to impose conditions on a larger $7.4 billion transaction involving Chesapeake Energy and Southwest Energy in 2024, suggesting recognition of robust competition among natural gas producers in the region.
According to Quantum, lifting the FTC order would serve the public interest by encouraging investment and energy development, rewarding compliance, and promoting effective antitrust enforcement.
The petition further challenges the FTC’s legal theory regarding interlocking directorates under the Clayton Act, emphasizing that no violation can occur unless a person actually serves on competing boards—a condition not met in this case.
The FTC is currently seeking public comments on Quantum’s petition, with submissions accepted until August 21.
Spokespersons for the FTC, Quantum Energy Partners, and EQT Corp. have declined to comment on the petition at this time.
