- EQT produced ~4.1 Bcf/d and CNX is around ~1.5 Bcf/d. The acquisition would make EQT the largest natural gas producer by a mile.
- EQT low-balled bid Chevron's assets, but given the valuation, it's unlikely Chevron approved the deal.
- So rather than going for bolt-on acquisitions, EQT appears to be going for a real juggernaut play. By acquiring CNX, it will produce ~20% of Northeast gas production.
- This will give EQT immense pricing power for the region.
- In summary, if EQT can pull this deal off at today's low valuations, the stock's upside could be even higher than the $25 we are currently envisioning.
For further details see:
EQT's Acquisition Of CNX Would Make It A Real Juggernaut