In a significant shift within the oil and gas industry, US natural gas producer EQT Corp. has made the decision to acquire its former subsidiary, Equitrans Midstream Corp. This purchase, an all-stock transaction, is valued at an approximate $5.2 billion. Read more from the original report here.
The specifics of the deal dictate that each outstanding share of Equitrans will be exchanged for 0.3504 of EQT shares, detailed in the company’s announcement on Monday.
Equitrans Midstream Corp., the entity at the center of this acquisition, boasts an impressive portfolio within the energy sector. It owns and operates approximately 940 miles of interstate pipelines, according to information made available on its official website. Perhaps most notable among Equitrans’ holdings is the somewhat controversial Mountain Valley Pipeline project. This major pipeline development has been a subject of legal and communal contention and is currently several years behind its original timeline for completion.
This acquisition is a clear representation of recent trends in the oil and gas industry, where significant transactions and consolidation activities are becoming more commonplace. As EQT Corp. buys back its former unit, industry professionals will undoubtedly be watching closely to gauge the impact of this large-scale purchase on other potential deals in this sector.