EQT to acquire Olympus Energy assets for $1.8bn, boostin Marcellus shale presence
EQT has signed an agreement to acquire the upstream and midstream assets of Olympus Energy for a total consideration of $1.8bn.
The acquisition, which includes approximately 90,000 net acres and a production rate of 500 million cubic feet per day (mcf/d), is expected to significantly enhance EQT's footprint in south-west Pennsylvania.
The payment for the acquisition will be made through a combination of approximately 26 million shares of EQT common stock, valued at $1.3bn, and $500m in cash.
EQT plans to fund the cash portion with available cash and borrowings under its revolving credit facility.
The assets involved in the transaction are expected to generate an average annual adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of approximately $530m and unlevered free cash flow of around $270m over the next three years, based on current strip pricing.
This implies an attractive adjusted EBITDA multiple of approximately 3.4 times and an unlevered free cash flow yield of around 15%.
Olympus Energy's assets include more than ten years of high-quality Marcellus inventory and an additional seven years of potential from the Utica formation.
The company's integrated platform and inventory are comparable to EQT's industry-leading cost structure in terms of unlevered free cash flow breakeven price.
The transaction is due to be completed early in the third quarter of 2025, pending regulatory approvals and customary closing conditions.
EQT's Board of Directors has unanimously approved the deal.
Moelis & Company acted as the lead financial advisor, while Greenhill, a Mizuho affiliate, provided financial advice to EQT.
Legal counsel for EQT is provided by Vinson & Elkins. Jefferies served as financial advisor to Olympus Energy, with Kirkland & Ellis as legal counsel.
In a related development, EQT announced a joint venture (JV) with Blackstone Credit & Insurance (BXCI) in November last year.
The JV encompasses EQT's interests in critical infrastructure assets including the Mountain Valley Pipeline, transmission and storage facilities, and the Hammerhead Pipeline.
BXCI will invest $3.5bn in cash for a non-controlling equity stake in the JV, which is valued at $8.8bn.
"EQT to acquire Olympus Energy assets for $1.8bn, boostin Marcellus shale presence" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
EQT could acquire majority stake in landfill RNG company Waga Energy
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. Private equity investor EQT is in talks to acquire a majority stake in French RNG project developer Waga Energy with the intention of eventually taking the company private, the partners announced on Friday. EQT says it plans to acquire 54.1% of Waga Energy's outstanding shares at a price of 21.55 euros per share. It also plans to acquire 65.9% of the company's voting rights, per a news release. The deal is subject to regulatory approvals and is expected to be completed in the second half of the year. Waga Energy's board of directors has approved moving forward with a the proposed transaction. It has hired an independent expert to examine the offer, Waga said in the release. EQT says the deal will also accelerate Waga's growth and cement its position as a global renewable natural gas provider. The firm says its financial backing would help Waga better compete in larger markets while also addressing its core market of small and medium-sized landfills sites. EQT says its 15-year track record of investing in energy transition infrastructure makes it the right fit to lead the deal. Its portfolio includes waste-to-energy companies Arcwood Environmental, Encyclis Reworld. The firm also acquired a majority stake in Heritage Environmental Services in 2023 and a majority stake in waste and recycling software company AMCS in 2024. Waga uses its proprietary Wagabox RNG technology to purify landfill gas into RNG, which the company says is ideal for small and medium landfills because it can process landfill gas with up to 30% air content. The majority of European landfills where Waga has developed its technology fall into this category, the company said. Waga has shifted its focus to North America in recent years and has a growing U.S. market share. The company has so far signed 13 projects in the U.S, it said. Some of these signed deals are with Casella, while other completed projects are partnerships with Veolia, Suez and GFL Environmental. About 79% of the units it has under construction are based in the U.S., and four of its latest contracts are also based in the U.S., it reported in March. Waga currently has a total of 50 RNG production units in operation or under construction across Europe and North America. Its commercial pipeline is about 16.8 terawatt hours per year as of April 2025, up 40% year over year. Waga went public in October 2021, and since then, its revenues have grown by about 66% on average per year, the company said. The company reported 2024 revenue of 55.7 million euros and a net loss of 17.6 million euros. According to the proposed deal, if all legislative and regulatory conditions are met, EQT plans to take the company private by requesting a squeeze-out of remaining shares and then delisting the company. EQT also noted that the initial share price of 21.55 euros could increase through an earn-out amount of up to 2.15 euros per share based on the aggregate amount of U.S. federal investment tax credits that Waga could monetize related to projects it developed in the country. Other major public RNG and landfill gas companies have undergone notable sales in the last few years. In 2022, BP completed the $4.1 billion acquisition of Archaea, positioning BP as a major RNG developer for U.S. landfills. Recommended Reading Waste companies report RNG progress; plus news from Aemetis, Waga and more Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
4 days ago
- Axios
Private equity firm EQT to buy biomethane producer Waga
Private equity firm EQT on Friday said it's agreed to acquire Waga Energy, via a two-part deal that would value the French biomethane producer at over $600 million. Why it matters: This could set up expansion for Waga into the U.S., where biomethane may be one of the few types of renewables unhampered by the Trump administration — given that it utilizes existing natural gas infrastructure. It also appears to be the first renewable natural gas deal for EQT (the global private equity giant, not the Pittsburgh-based energy producer). Zoom in: EQT agreed to initially buy a 54.1% stake for €289 million, or €21.55 per share (27% premium to yesterday's closing price). Once that tranche closes, EQT would launch a mandatory tender for the remaining shares.
Yahoo
4 days ago
- Yahoo
EQT Buys Majority Stake in Waga Energy for $331 Million Ahead of Potential Takeover
EQT is set to buy a majority stake in renewable natural gas producer Waga Energy ahead of a possible full takeover in a deal that values the company at 534.2 million euros ($611.4 million). EQT said Friday that it has agreed to buy 54.1% of Waga for 21.55 euros a share. Based on this price, the stake would cost around 289 million euros and represents a 27% premium to Thursday's closing price. Fight Begins Over the $500 Million Estate of Zappos CEO Tony Hsieh's Surprise Will BCG Fires Two Partners Over Gaza Aid Work Procter & Gamble to Cut 7,000 Jobs Stocks Slip, Tesla Tanks as Trump-Musk Feud Rages Three Recessions in Less Than Two Decades? A Millennial's Lament Once the transaction is complete, EQT said it would file a mandatory cash offer to buy the remaining shares at the same price and delist the company. Waga's board of directors has expressed initial unanimous support for EQT's proposals, it said. The price could rise by up to 2.15 euros a share depending on Waga's ability to monetize U.S. investment tax credits on its projects in the country, EQT said. Waga Energy produces renewable natural gas–or biomethane–from landfill gas and EQT said it hopes the tie-up would create a global leader in production. Trading of Waga Energy's shares was suspended in early morning European trading. The deal is subject to regulatory approvals and EQT expects the acquisition of the shares to complete in the second half of the year. Write to Adam Whittaker at U.S. Trade Deficit Cut in Half on Record Drop in Imports Crypto Firm Circle's Shares Soar in Stock Market Debut Humana to Back Curbs to Medicare Advantage Billing Practices Live Q&A: Deficit, Debt and Markets—We Answer Your Biggest Questions A New Shot Prevents HIV—and Breathes New Life Into a Stagnant Biotech Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
