EQT Corp. has completed the purchase of the upstream and midstream operations of Olympus Energy for $1.8 billion and consequently raised its projected sales volume for 2025 by 100 billion cubic feet of natural gas equivalent (Bcfe).
The Appalachian Basin-focused producer said in its quarterly report it expects to integrate the new assets within a month.
“The assets comprise a vertically integrated, contiguous 90,000-net-acre position offsetting the company’s existing core acreage in Southwest Pennsylvania with net production of approximately 500 MMcf/d [million cubic feet a day]”, EQT said April 22 announcing the deal.
“Olympus Energy has over 10 years of high-quality Marcellus inventory at maintenance activity levels, with an additional seven years of upside from the Utica”, EQT said.
“Olympus Energy’s integrated platform and high-quality inventory drives an unlevered free cash flow breakeven price comparable to the company’s peer-leading cost structure”.
In the second quarter EQT logged 568 Bcfe in sales volumes, up 60 Bcfe from Q2 2024, “driven by strong well performance and compression project outperformance, underscoring continued synergy capture momentum from the company’s acquisition of Equitrans Midstream Corp.”, EQT said.
EQT took over Equitrans last year, with president and chief executive Toby Z. Rice calling the enlarged EQT “America’s only large-scale, vertically integrated natural gas business”.
For the full year 2025, EQT raised its sale volume guidance from 590-640 Bcfe to 2,300-2,400 Bcfe.
Meanwhile its Q2 2025 adjusted net result rebounded to $273 million, compared to an adjusted net loss of $37 million for Q2 2024. EQT’s adjusted earnings per share of 45 cents beat the Zacks Consensus Estimate of $0.44.
Before adjustment for nonrecurring items, net profit was $784 million, up $774 million against Q2 2024.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $1.03 billion, up $563 million compared to Q2 2024.
Adjusted operating cash flow landed at $794 million, up $389 million. Free cash flow increased to $240 million, compared to -$171 million for Q2 2024.
Besides production, EQT’s average realized price also increased to $2.81 per thousand cubic feet equivalent, compared to $2.33 for Q2 2024.
Meanwhile operating costs dropped from $1.4 per thousand cubic feet equivalent in Q2 2024 to $1.08 in Q2 2025.
“The company is reducing its projected full-year 2025 per unit operating costs by six cents per Mcfe [thousand cubic feet equivalent] attributable to benefits from the Olympus acquisition and upstream LOE [lease operating expense] outperformance”, EQT said.
It kept its capital expenditure guidance at $2.3-$2.45 billion “as efficiency gains offset activity adds related to the Olympus acquisition”.
“During 2025, the company plans to turn in line 95-120 net wells, including 24-36 net wells in the third quarter of 2025”, EQT added.
Rice said, “We are seeing tremendous momentum for in-basin natural gas power and data center demand and EQT is uniquely positioned to capitalize on this set-up due to our production scale, inventory duration, world-class integrated infrastructure, investment grade credit ratings and low-emissions credentials”.
EQT ended Q2 2025 with $391.8 million of current debt, while cash and cash equivalents stood at $555.49 million. “Total liquidity, excluding available capacity under Eureka Midstream LLC’s revolving credit facility, as of June 30, 2025 was $4.1 billion”, EQT said.
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