EQT Corporation (EQT) announced that it has closed the acquisition of THQ Appalachia I Midco, LLC (Tug Hill) and THQ-XcL Holdings I Midco, LLC (XcL Midstream).

The final valuation, post adjustments to the purchase price, comprised roughly US$2.4 billion in cash and 49.6 million shares of EQT common stock. EQT financed the cash segment of this consideration through US$1.25 billion in term loan borrowings, US$1 billion from existing cash reserves, and the previously held US$150 million cash deposit in escrow. These holdings boast some of the lowest breakeven prices within the Appalachia region. This acquisition is anticipated to lower the free cash flow breakeven price by around US$0.15 per MMBtu, thereby reinforcing the company's resilience moving forward.

At present, Tug Hill's upstream assets are generating approximately 800 MMcfe per day, exhibiting a 20 percent liquid yield. In addition, XcL Midstream's gathering and processing assets supplement these holdings with the inclusion of 145 miles of proprietary midstream gathering systems. These systems are strategically interconnected with key long-haul interstate pipelines across the southwestern Appalachian area.