Latest news with #OlympusEnergy
CNBC
05-05-2025
- Business
- CNBC
UBS says this energy stock that's outperforming this year is primed for even more gains ahead
A couple of catalysts could send shares of EQT even higher over the next year, according to UBS. Analyst Josh Silverstein upgraded shares of the American natural gas company to buy from neutral and hiked his price target by $10 to $64, implying 23.4% upside from Friday's close. That upgrade comes as the stock is already up 12% in 2025, beating out the S & P 500's more than 3% decline in that time. Shares have also soared more than 38% in the past six months. EQT 6M mountain EQT, 6-month "We remain constructive on the natural gas outlook in 2026, underpinned by the three large scale [liquefied natural gas] facilities startups in the Gulf, and the growing demand for power generation from the nation wide [artificial intelligence] data center buildout," the analyst wrote in a Monday note to clients. "We see EQT as well positioned to capture the potential upside given its unhedged exposure in 2026." AI data center demand could even bolster the company this year, as Silverstein noted the potential for a power supply contract – particularly in the Appalachian Basin – to take place given that the company is currently involved in more than 10 commercial negotiations. The company announced last month that it's buying oil and gas company Olympus Energy for $1.8 billion, in a deal expected to close in the third quarter. That could serve as another catalyst for growth in the coming months, Silverstein said. Silverstein's upgrade puts him with 16 others who have a buy or strong buy rating on the stock, according to LSEG. Eight others have taken a neutral view, having a hold rating.
Yahoo
24-04-2025
- Business
- Yahoo
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.
Business Journals
22-04-2025
- Business
- Business Journals
EQT to acquire Marcellus Shale gas producer for $1.8 billion in latest expansion move
Story Highlights EQT Corp. to acquire Olympus Energy for $1.8 billion. Olympus Energy produces 500 million cubic feet of gas daily. Acquisition includes wells, acreage and midstream assets of Olympus Energy. EQT Corp. announced Tuesday it would acquire the upstream and midstream assets of Canonsburg-based natural gas driller Olympus Energy in a stock and cash deal worth $1.8 billion. Olympus Energy is a privately held company formerly known as Huntley & Huntley Energy Exploration. It became Olympus Energy in 2019. It's owned by Blackstone, a big private equity firm, and has about 500 million cubic feet of natural gas production per day from wells in and around Allegheny County. The deal announced by EQT (NYSE: EQT), one of the largest independent natural gas producers, includes $500 million in cash and 26 million shares of EQT common stock. The acquisition includes its wells, acreage and midstream assets. It will close in the third quarter. It's the latest acquisition by EQT, which has expanded under CEO Toby Z. Rice to also include, through other acquisitions, Chevron's Appalachia assets, Tug Hill Operating and its midstream assets, and Alta Resources in northeastern Pennsylvania. It follows EQT's acquisition of Equitrans Midstream Corp. (NYSE: ETRN) in an all-stock deal in 2024 and the November 2024 joint venture with Blackstone Credit & Insurance for a midstream joint venture that includes the Mountain Valley Pipeline it acquired earlier in the year in the Equitrans deal. EQT will grow larger still, in wells and also future sites to drill, with Olympus. It said Olympus has 10 years of Marcellus and seven years of Utica locations beyond its current drilling. 'The assets are positioned adjacent to several proposal power generation projects, providing strategic value upside,' Rice said in a statement. List of Largest Shale Gas Producers in Southwestern Pennsylvania Shale gas production, local, 2023 Rank Prior Rank Business name 1 1 EQT Corp. 2 2 Range Resources Corp. 3 3 CNX Resources Corp. View this list
Reuters
22-04-2025
- Business
- Reuters
EQT to acquire upstream and midstream assets of Olympus Energy for $1.8 billion
April 22 (Reuters) - EQT (EQT.N), opens new tab said on Tuesday it plans to acquire the upstream and midstream assets of Olympus Energy in a deal valued at $1.8 billion. The company also beat first-quarter profit estimates on Tuesday, benefiting from higher natural gas prices. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The company reported an adjusted profit of $1.18 per share, for the quarter ended March 31, above analysts' average estimate of $1.02 per share, according to data compiled by LSEG.
Yahoo
17-02-2025
- Business
- Yahoo
Blackstone weighs sale of natural gas explorer Olympus Energy
Private equity firm Blackstone is considering the sale of Olympus Energy, a natural gas explorer based in Canonsburg, Pennsylvania, reported Bloomberg, citing people familiar with the matter. The sale value of the natural gas explorer operating in the Appalachian region could be approximately $2bn. The alternative asset manager is working with financial advisers to find a potential buyer for the natural gas company. No final decision has been made, and Blackstone may choose to retain ownership. Currently, the discussions are confidential, reported the sources. A representative for Blackstone declined to comment on the matter, and Olympus Energy has not yet responded to requests for comment, reported the publication. Established in 2012 as Huntley & Huntley Energy Exploration, Olympus Energy, which was rebranded in 2019, operates on approximately 100,000 net acres in south-western Pennsylvania, US. In early 2024, Chesapeake Energy agreed to merge with Southwestern Energy in a $7.4bn deal, forming what is said to be the largest natural gas producer in the US. This merged entity is now known as Expand Energy. Blackstone company oversees more than $1trn in assets. In November 2024, Blackstone Credit & Insurance (BXCI), a unit of Blackstone, formed a midstream joint venture (JV) with EQT, a US-based natural gas producer. The JV encompasses EQT's key infrastructure assets including the Mountain Valley pipeline (MVP), transmission and storage facilities, and the Hammerhead pipeline. As per the terms of the deal, BXCI is required to invest $3.5bn in cash for a non-controlling equity stake, valuing the JV at $8.8bn. "Blackstone weighs sale of natural gas explorer Olympus Energy" 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. Sign in to access your portfolio
