EQT will buy Olympus Energy’s midstream and upstream assets from Olympus Energy for $1.8 billion

EQT announced on Tuesday that it will buy Olympus' upstream and middlestream assets for $1.8 billion, in a cash and stock deal.

Profits also exceeded expectations in the first quarter, thanks to higher natural gas prices as well as increased sales volumes.

The company will fund the deal with its cash and borrowings from its revolving loan facility and 26 million shares of EQT stock, valued at $1.3 billion.

Last year, EQT sold minority stakes of some of its pipelines through a joint-venture to alternative asset manager Blackstone in exchange for $3.5 billion cash to reduce the debt it had accumulated following the $14 billion acquisition of pipeline operator Equitrans Midstream.

As of March 31, the company's net debt was $8.1 billion and it expects to reduce to $7 billion at year-end.

The transaction is expected to be completed in the first quarter of 2025.

LSEG data shows that EQT's adjusted profit for the quarter ending March 31 was $1.18, which is above analysts' estimates of $1.02 a share. Reporting by Tanay dhumal, Bengaluru. Editing by Mohammed Safi Shamsi & Devika Syamnath

(source: Reuters)